Cruickshank heads up banking investigation

Don Cruickshank, ex-chief of Oftel and current head of Action 2000, yesterday launched a far-reaching consultation process aimed at improving banking services in the UK.

Cruickshank will lead what one Treasury official called an "electronically run process" to look at innovation, competition and efficiency in the sector. The consultation document will be made available at http://www.bankreview.org

Cruickshank said the review will examine all areas of banking services, including the treatment of small and medium-sized businesses. An investigation into the spread and cost of Internet banking services has not been ruled out.

Also under investigation is the money transmission system used by banks - predominantly the Bank Automatic Clearing System (Bacs). The system will be compared to similar programs overseas, and the apparent monopoly over terms and cost of access to the transmission system held by the Association of Payment Clearing Services (Apacs) will be investigated.

Cruickshank said: "The questions being asked range from the very technical to broader issues and in particular the area of lending to small businesses."