Tom Clougherty’s recent post on competition (or the lack thereof) in UK banking nicely highlights the problem posed by barriers to entry into the British banking industry. That there is indeed an entry problem should be obvious from the fact that Metro Bank, which opened in 2010, was the first new financial institution in the UK to get its own banking license in over 150 years!
What may still not be sufficiently appreciated is the extent to which entry into the British banking industry has been limited, not by the unavoidable challenges would-be entrants must face in attempting to compete head-on with established British banks, but by hurdles erected by British bank regulators.
Troubles at Wells Fargo, Bank of America and Deutsche Bank have the entire global industry facing tighter regulations
If banking villain du jour Carrie Toldstedt thought she had managed to sneak away quietly into the night, with her recently topped off bank accounts intact before Wells Fargo's biggest consumer fraud scandal in years became front pa...
The Competition and Markets Authority is concerned about the concentration of retail banking and potential barriers for new entrants into the market.
Looking over the FRB’s bank data, clear trends emerge with respect to the growth (or lack thereof) in the banking system. Looking at seasonally adjusted data for commercial banks, total loans & leases are down 2.4% YoY. Declines in ...