Page 10 - Banking Industry analysis (H)

Bargaining Power of

Supplier

In the U.K. the government is a

major supplier to the industry. In
addition to economic support post

the economic crisis, the government makes the rules. The

government changed the regulations allowing the Lloyds

bank’s acquisition of HBOS.

“The end-customer is a supplier to the banks

and as such it is essential for the banks to

maintain customer lock-in. The recent economic

down turn has led to customers’ lack of faith in

banking institutions and this has increased the

bargaining power of the customer as a supplier

(Datamonitor, 2009).” (4)

Supplier power is classified as High