Access to payment systems is crucial for a new bank to succeed in the market. Without the ability to use this infrastructure, no bank can compete. More effective rules are needed to prevent discrimination against challengers, the Competition Authority states in a report submitted to the government.
The Swedish banking market is dominated by a few large players, although new banking firms are making inroads. The cost of accessing payment systems is a problem for small banks. There are no rules, for example, on non-discriminatory terms for access to the infrastructure. This is what distinguishes the banking market from electricity and telecommunications. This is revealed in the Competition Authority's report, „Access Conditions for Payment Systems – Differences for Small and Large Banks“.
– But a new strategy to strengthen competition in the banking and financial markets must be based on stricter requirements for objective and non-discriminatory conditions for access to payment systems, clearer rules for infrastructure cooperation, and measures that make it easier to switch banks, says Director-General Claes Norgren.
Sweden is the EU country, before its enlargement, with the fewest cash machines per capita. At the same time, more cash withdrawals are made per machine here than in any other country in the comparison. According to the Competition Authority's assessment, the major banks are unwilling to let companies that want to open more cash machines enter the market.
The report proposes:
For further information, contact:
Karl Lundvall, Project Manager, tel. 08-700 16 33 Jimmy Dominius, Press Secretary, tel. 08-700 15 18 or 073-773 15 80 The full report is available to read on our website. www.konkurrensverket.se
The press release is also available on our website [www.konkurrensverket.se] Read the report [http://www.konkurrensverket.se/bestall/pdf/rap_2006-1.pdf]
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