UK competition agency threatens inquiry into banks

LONDON — The head of Britain's Office of Fair Trading has warned the country's big banks that they could face a full-blown monopoly investigation if they drag their heels on opening up to competition.

John Fingleton said in a speech Thursday that banks must act to make it easier for customers to understand various charges and to switch to another bank if they choose.

If the situation doesn't improve, Fingleton said the banking industry could be referred for an investigation by the Competition Commission. That agency has the power to force a break-up of private companies, as it has done in ordering BAA Ltd. to sell Gatwick, Stansted and Edinburgh airports.

Fingleton highlighted three complaints: concentrated markets which discourage competition, complex pricing arrangements and the lack of innovation in banks' payment systems.