LONDON, July 21 (Reuters) - Britain's competition watchdogshould take a hard line and be prepared to shake up the bankingindustry to improve services for customers, a leading lawmakersaid on Monday, saying he was fed up with years of inaction.
"There are millions of banking customers who feel they havehad a raw deal, and we're hoping you can do something about it,"said Andrew Tyrie, chairman of the the Treasury Select Committeecross-party panel of lawmakers.
Tyrie's panel was quizzing officials from the Competitionand Markets Authority (CMA), which said on Friday it is likelyto launch an in-depth investigation later this year into bankservices for small business customers and personal accountsbecause of a lack of competition.
The CMA took over as Britain's independent competitionwatchdog in April and its review of banking would add to severalother reviews in the last 15 years, which Tyrie said had failedto shake-up the industry as required.
"This (lack of competition) has been evident for years, fordecades, and we've finally had enough and we want to see someaction," he said.
CMA Chief Executive Alex Chisholm said his organisation hada number of tools at its disposal, which could potentially seeit improve competition where other attempts have failed. He saidnew technology should also help, and allow greater pricecomparison.
Chisholm said a successful and competitive market is drivenby banks' need to improve services "because if they don't do abetter job then their customers will go elsewhere," rather thanbecause they have been told to do so.
The CMA has the power to order a break up of banksconsidered too dominant, as well as so-called behaviouralremedies, such as improving information given to customers. TheCMA will decide in autumn whether to launch the fullinvestigation, which would take about 18 months. (Reporting by Steve Slater, editing by Louise Heavens)
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