Explain, with the use of examples, why banking is dominated by
oligopoly rather than perfect competition in the UK? (with 700-800
words)

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Clarification of Question by steven-ga on 07 Dec 2002 16:02 PST

Explain, with the use of examples, why banking is dominated by 
oligopoly rather than perfect competition in the UK? (with 700-800 
words)

Banking in the UK is a monopoly that is operated through a cartel
controlled by the the Bank of England which, of course, is Government
controlled.

It has always been so and is unlikely ever to change.

Of course, cosmetics are in place to create the illusion that some
competition exists.

Is it any different anywhere else?

It is not a cartel controlled by the Bank of England. Numerous
American and other international banks are in London over whom the
BofE has little influence. If anything it is now run by the FSA as
regulator.<p>Steven - I'm an expert in this area, but not an official
google researcher. For starters try looking up the Cruickshank report
and at http://www.fsa.gov.uk .

Hi, Sam

Well, in the opinion of the Office of Fair Trading, the UK banks DO
act as a monopoly.

And NO bank can operate in the UK without a nod from the Bank of
England.

The FSA is one of the cosmetics, run by Howard Davies (formerly of the
BoE). It is totally ineffective. Look at how superficially it deals
with every issue.

The Cruickshank Report is another cosmetic. Take a look at how long it
has taken the Government to take any action. Or to implement any of
the EC directives.
 
It has ALWAYS been so. Well that's what my daddy told me.

Yours

Montague Norman Jnr