The FCA has published its response to the Competition and Markets Authority’s final report into the effectiveness of competition in the retail banking market. The FCA’s response provides an overview of the retail banking market, summarises the CMA’s findings and remedies and sets out the action the regulator proposes to take.

In terms of next steps, the FCA will examine overdrafts (arranged and unarranged) in the context of the wider consumer credit market in comparison to other products. The FCA will also undertake further work to better understand how firms’ actions in one market may affect outcomes and how conduct and competition are affected by the links between different parts of the business model. Relevant issues for the FCA also include the drivers of consumers holding multiple products with one provider and the impact of innovation in this sector, including the increasing role of non-banks.

View FCA response to CMA report on competition in the retail banking market, 3 November 2016