OFT warns new banks stifled by red tape

A review conducted by the quango found businesses and individuals are loyal to established brands and have a preference for banks with a local branch. Firms also reported the process of becoming authorised by the FSA to accept deposits lacked transparency, leading to uncertainty, while capital requirements are disproportionately affecting new entrants. Other problems included the significant IT investment requirements, difficulty in accessing industry-wide payment schemes such as CHAPS and BACS and the lack of interbank lending. Clive Maxwell, executive director for goods, services...