2.3 The Need to Promote More Competition

Question 1

What do the Government and the financial regulators want to see in the financial sector?

Answer 1

• More competition within retail banking
• More consumer choice
• Banks motivated to give a better service and make lower charges

Question 2

What does it mean if there is genuine competition?

Answer 2

There are more providers that are independent of each other, designing products that are useful to consumers and are priced fairly

Question 3

What would be the results of genuine competition?

Answer 3

• Wider consumer choice
• Mitigation of the fact that most larger financial institutions are corporate owned by shareholders and so motivated by profit