Further investigations may need to be conducted into the state of competition in the British banking sector in the near future, it has been said.
According to John Fingleton, head of the Office of Fair Trading (OFT), there are genuine concerns among regulatory officials that the country's financial sector is still dominated by four major lenders despite recent attempts to widen competition.
Mr Fingleton explained there has been a distinct lack of progress in the arena over the last decade and added there is likely to be a need for more analysis on the workings of the market over the next couple of years.
"A step change is needed in the banking sector. Going forward, we need to see evidence which demonstrates that the market dynamics of entry and switching are sufficient to drive stronger customer-focused competition," he noted.
The official from the OFT - which was established in 1973 - went on to indicate that the Competition Commission may need to get involved in solving this problem.
By Asim Shah
