COMMERCIAL-IN-CONFIDENCE
Barclays and National Westminster, this gap having largely opened up since about the mid-1980s. For example, the two banks combined accounted in 1991 for less than half (42 per cent) the total group liabilities of Barclays and Nat West combined. They are also smallest in numbers of branches, but here there has been no significant difference in relative position during the 1980s.
10. The Office has considered, however, a number of separate markets within the overall activity of banking.
It is possible to calculate market shares in a number of ways - by percentage of accounts (or value) or customers or branches for example - but we have been necessarily limited by the data provided by the parties.
a Banking for the personal sector
11.
Midland and Lloyds together have 28 per cent of personal current accounts and 25 per cent of non-mortgage lending. There are a large number of banks and building societies that provide accounts and deposit-taking facilities, cheque and other money transmission services, and offer loans, including credit cards, store cards and manufacturer-arranged finance (eg for cars). Technology has expanded the range of facilities through automated teller machines and direct or home banking systems and there appears, on the face of it, to be a wide choice of personal banking in this sector.
12. There is less choice among suppliers of non-mortgage lending, where the bank overdraft and loan for unspecified purposes remains the norm. About 18 per cent of this market is supplied by credit cards, and 63 per cent by bank loans and overdrafts.
b Banking for small businesses
13. Small businesses are defined in this case as those with a turnover of less than £1 million; they account for 95 per cent of all businesses, and are an important source of entrepreneurial drive in the economy, although their contribution to total employment and output is much smaller.
14. Small businesses require money transmission services, deposit and savings accounts, advice and loans. The first three of these are usually available from a variety of sources including building societies, the TSB, the Girobank, and individual advisers.
15.
However, the small firm (SF) is usually dependent on the 4 main clearing banks for loans, and usually makes use of a package of services including the others mentioned above, so that the small businessman wanting loan and overdraft facilities will have a more restricted choice for this particular product as a result of a Lloyds/Midland merger.
COMMERCIAL-IN-CONFIDENCE