TY - JOUR

T1 - Competition and the Provision of Banking Services to UK SMEs

AU - Ashton, John

AU - Keasey, Kevin

PY - 2005/6

Y1 - 2005/6

N2 - This paper examines the report produced by the Competition Commission on the provision of SME banking services in the U.K. The report is assessed in terms of underlying assumptions used to describe and assess how banks operate and perform. The Competition Commission suggested “remedies” are drawn from a specific economic model assumed to be representative of the U.K. banking industry. It is concluded the remedies proposed by the Competition Commission are misplaced and may impose a substantial future cost on both banks and SMEs receiving banking services. It is proposed that the ramifications of this case aresubstantial for the present system of allocating bank funding to SMEs, in both the U.K. and international economies where similar antitrust or competition guidelines are employed.

AB - This paper examines the report produced by the Competition Commission on the provision of SME banking services in the U.K. The report is assessed in terms of underlying assumptions used to describe and assess how banks operate and perform. The Competition Commission suggested “remedies” are drawn from a specific economic model assumed to be representative of the U.K. banking industry. It is concluded the remedies proposed by the Competition Commission are misplaced and may impose a substantial future cost on both banks and SMEs receiving banking services. It is proposed that the ramifications of this case aresubstantial for the present system of allocating bank funding to SMEs, in both the U.K. and international economies where similar antitrust or competition guidelines are employed.

U2 - 10.1007/s11187-005-6447-x

DO - 10.1007/s11187-005-6447-x

M3 - Article

VL - 24

SP - 477

EP - 485

JO - Small Business Economics

JF - Small Business Economics

SN - 1573-0913

IS - 5

ER -