Corporate report

SME banking 2002 behavioural undertakings: report on compliance 2014

An annual audit into whether 8 leading UK banks are complying with undertakings they gave on not to bundle loans and accounts.

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In 2002, a number of banks agreed that they would no longer (except for in specific circumstances) make a small and medium-sized enterprise (SME) customer open or maintain a business current account in order to get a business loan. This practice is commonly known as ‘bundling’ and was prevented by behavioural undertakings.

This report was published following an investigation by the Competition and Markets Authority (CMA) which examined levels of compliance with the behavioural undertakings. The report concludes that First Trust Bank and HSBC Bank have breached the behavioural undertakings, while issues at other banks were also identified.

The directions issued to First Trust and HSBC are also available.

More information is in the CMA press notice from 22 October 2014.

Read the report for 2015.