The Competition and Markets Authority (CMA) has published an addendum to its provisional findings in the retail banking market investigation. The CMA has provisionally found that the capital requirements regime places banks on the standardised approach to calculating risk weights at a competitive disadvantage in lower loan-to-value (LTV) mortgages than banks on the internal ratings-based approach. The CMA also reports that the majority of the CMA inquiry group considered that further evidence was needed in order to be sufficiently confident about the scale of the impact on banks’ costs and has decided not to undertake any further analysis to determine whether the disadvantage in lower LTV mortgages gives rise to a barrier to entry or expansion in retail banking. The deadline for comments to the addendum is 6 May 2016.
View CMA addendum to provisional findings in retail banking market investigation, 15 April 2016