Bank Adviser Says Single Bank Unlikely To Dominate Current Account Market

News: A veteran bank adviser to institutions across Europe has argued that no single lender in the UK is likely to dominate the current account market, according to Yorkshire Post. John Kirkbright said that, although banks expect switching by customers to double from around 5% to 10% following rules requiring one-week account transfers, the increasingly costly nature of providing current accounts would likely discourage dominance by any one bank. Kirkbright added, however, that lenders that maintained strong incentives for switching and for current accounts would be set to benefit most from the recent changes.

BMI View: The UK banking sector continues to deleverage, but at a fairly modest pace. The recent turnaround in economic activity is a positive development which will underpin stability for the industry. In addition, we expect monetary policy to remain accommodative, which although not reviving the fortunes of weak domestic banks, will nonetheless provide a further crutch that will safeguard systemic stability.

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Geography: United Kingdom