Banking

December 2005

The Office of Fair Trading (OFT) is to examine the UK system of cheque clearance and will publish a report in the summer of 2006. A number of issues will be considered including a cost/benefit analysis on cheque clearance times as well as differing practices between banks.

Back in 2002, the Competition Commission found that the big four banks were making business customers pay too much in bank charges and recommended a reduction. Despite this, business banking costs have continued to rise over the last three years. It is an area the OFT intends to look at in due course.

Perhaps this is the reason that a Banking Code Standards Board survey has found that businesses are finding it easier to switch bank accounts than ever before thereby keeping disruption to business to a minimum.

Internet links:

The OFT press release on cheque clearance can be found at:
OFT news

To read about increased business banking costs go to:
Moneyworld news

Businesses finding it easier to switch bank accounts:
Firststop4business news

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