Challenger banks Virgin Money and Yorkshire Building Society call for RBS and Lloyds to be split up

first_imgSmall lenders are calling on the competition watchdog to look at breaking up RBS and Lloyds, arguing the market is too focused on giant players.The Yorkshire Building Society (YBS) and Virgin Money have both written to the Competition and Markets Autho­rity (CMA) to push for the big banks to carve out more new challengers from their existing networks of branches and customers.Lloyds has already created TSB as a separate high street bank, and RBS is close to launching Williams and Glynn as a new, independent lender.The exercise has taken both banks several years, and cost billions of pounds.But the challengers say it is the best way to increase competition rapidly.“The Big Five continue to hold an overly dominant market position, with younger customers effectively “sleepwalking” into opening an account with the Big Five,” said YBS, proposing “further forced divestitures”.And Virgin Money, which is in the process of floating on the stock market, said: “It is worth examining the case for future divestments which could reduce concentration levels.”They were joined by the business department’s former entrepreneur in residence, Lawrence Tomlinson, who said: “The only effective solution to the anti-competitive structure of the market” was to break up Lloyds and RBS “into their constituent parts”.The big banks declined to comment further on the CMA’s investigation. Monday 10 November 2014 8:36 pm Tim Wallace Tags: Challenger banks Company Lloyds Banking Group Royal Bank of Scotland Group Virgin Money Holdings Share whatsapp Challenger banks Virgin Money and Yorkshire Building Society call for RBS and Lloyds to be split up More From Our Partners Astounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgMark Eaton, former NBA All-Star, dead at 64nypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comWhy people are finding dryer sheets in their mailboxesnypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comKamala Harris keeps list of reporters who don’t ‘understand’ her: reportnypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comFlorida woman allegedly crashes children’s birthday party, rapes‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.com980-foot skyscraper sways in China, prompting panic and whatsapp Show Comments ▼last_img

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