BRITAIN’S big banks could be broken up after the country’s new competition watchdog set out plans for an 18-month investigation into services for small business customers and personal accounts because of a lack of competition.

    The U.K. Competition and Markets Authority (CMA) said banks have not done enough to meet the needs of retail customers or small and medium-sized businesses, such as making it easier to switch banks or providing clear information on fees.

    The review will mark the latest attempt to open up banking in Britain to more competition and is also likely keep the banks in the political spotlight ahead of next year’s election.

    The CMA, which became Britain’s new competition watchdog in April, has the power to order a break up of banks considered too dominant, as well as so-called behavioral remedies, such as improving information given to customers.

    State-backed Lloyds Banking Group and Royal Bank of Scotland, the biggest banks for both personal accounts and business banking, are most at risk of being told to cut their market share, potentially by selling more branches.

    A full investigation had been widely expected. It would take about 18 months, so it would be early to mid-2016 before any remedies were proposed.

    (SD-Agencies)