More competition needed in banking sector: Darling

Chancellor Alistair Darling wants to see increased competition in the financial sector which he believes is a key ingredient for markets to recover from the global financial crisis.

Darling said he wanted to see the entrance of smaller non-bank players into the market describing this as an`essential' ingredient to maintain competition and promote growth, nebusiness.co.uk reported.

"We want to see greater competition and choice for consumers as well as a bigger role for mutuals…We need to promote a competitive market, with non-banking institutions," he said.

According to nebusiness Darling hinted that the sale of Northern Rock might be a means to achieve this aim.

He said the government would dispose of Northern Rock, "as soon as appropriate in a manner that will promote competition for retail services".

Read the full story: Northern Rock speculation amid building society calls