Banking Industry Competition Probe Ordered

The video discusses the investigation by the Competition and Markets Authority into the UK banking sector, focusing on the dominance of major banks like Lloyds, RBS, Barclays, and HSBC. These banks control a significant portion of personal and business accounts, leading to limited consumer choice. New entrants like Metro Bank and supermarkets are trying to gain market share, but consumer reluctance to switch banks remains a challenge. Political figures have suggested breaking up big banks, but regulatory support is uncertain. The investigation's findings could take two years, prolonging uncertainty for shareholders.

What is the main concern of the Competition and Markets Authority regarding banking services?

• Lack of online banking options

• High interest rates

• Lack of differentiation among banks

• Excessive bank fees

Which four banks collectively supply 77% of personal current accounts in the UK?

• Lloyds, RBS, Metro Bank, HSBC

• Lloyds, RBS, Barclays, HSBC

• Metro Bank, Lloyds, Barclays, HSBC

• RBS, Barclays, Metro Bank, HSBC

What is the market worth of personal current accounts controlled by the four largest banks in the UK?

• £10 billion

• £12 billion

• £8 billion

• £5 billion

What role do supermarkets play in the financial services market?

• They offer loans to businesses

• They compete directly with major banks

• They provide financial services to consumers

• They regulate banking services

What is the potential impact of the competition watchdog's findings on shareholders of big UK banks?

• Prolonged uncertainty

• Decreased market share

• Immediate changes in regulations

• Increased profits