The UK Government is reported to have assured a bank that its aim to create the UK’s largest retail bank would not be subject to competition scrutiny (Lloyds / HBOS)

Summary On 18 September 2008 Lloyds TSB announced that it was to purchase HBOS, in a move that would create the UK's largest retail bank [1]. Although such a merger would normally cause serious competition concerns, the Government is reported to have assured Lloyds that the deal would not be subject to competition scrutiny. This article queries the implications of this merger for the government's overall competition strategy. Background With the announcement of the Lloyds/HBOS merger, the UK government signalled that its commitment to competition policy was another victim of the credit crunch. In simple terms, a bank works by taking deposits from customers and then lending those deposits out in loans and mortgages. However a bank can also take money from the wholesale markets to

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Auteurs

  • Ofcom (London)
  • Compass Lexecon (London)

Citation

Ciara Kalmus, David Shaharudin, The UK Government is reported to have assured a bank that its aim to create the UK’s largest retail bank would not be subject to competition scrutiny (Lloyds / HBOS), 18 septembre 2008, e-Competitions September 2008, Art. N° 21953

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