Cruickshank’s recommendations as to the future of the UK payment system
| Published date | 01 September 2002 |
| Pages | 209-218 |
| Date | 01 September 2002 |
| DOI | https://doi.org/10.1108/13581980210810201 |
| Author | John K. Ashton,Gary Boyes |
| Subject Matter | Accounting & finance |
Papers
Cruickshank’s recommendations as to the
future of the UK payment system
John K. Ashton and Gary Boyes
Received: 21st January, 2002
lnternational Institute of Banking and Financial Services, Leeds University Business School,
The University of Leeds, Leeds, West Yorkshire LS2 9JT, UK;
tel: +44 (0)113 233 4486; fax: +44 (0)113 233 4459; e-mail: ja@lubs.Ieeds.ac.uk
John K. Ashton holds the position of
Research Fellow in the International Insti-
tute of Banking and Financial Services at
the University of Leeds. In addition to
publications in a range of academic jour-
nals and books, John has previously
undertaken consultancy for a number of
companies and public organisations.
Prior to joining the Institute, he held an
academic position in Bournemouth
University, has worked in the life assur-
ance industry, and has achieved aca-
demic degrees in economic and social
history, business economics and applied
economics.
Gary Boyes holds the position of Senior
Research Fellow in the International
Institute of Banking and Financial Ser-
vices at the University of Leeds. Prior to
joining the Institute Gary worked for a
number of major financial services com-
panies including Halifax Bank, GE Capital
and Barclays Bank. His recent research
work has been covered in the Asian Wall
Street Journal, Computing Magazine and
the South China Morning Post. Gary has
achieved academic degrees in business
studies and computational geography for
business and is an Associate Member of
the Market Research Society.
ABSTRACT
Retail payments systems are a key element in the
financial infrastructure of any capitalist economy
— through them governments can enact economic
policy and individuals and companies can conduct
their transactions. A recent development for UK
retail payments systems has been the recommen-
dations of the ‘Review of Banking Services in the
UK’ (the Cruickshank Report). In this report,
recommendations are made as to the operation of
the primary UK retail payments system
(APACS); a new regulatory framework and the
removal of ‘barriers to entry’ are proposed to
encourage greater competition in the industry.
This paper considers these two proposals, which
have both received government support for early
implementation, in terms of wider policy issues
surrounding payments systems, including eco-
nomic efficiency and safety and security, and the
economic incentives which underpin the present
retail payments system in the UK. It is concluded
that the proposals for regulation of business activ-
ities to promote competition may underestimate
the importance of payment system safety and
security regulation. Equally, the proposed
removal or substantial reduction in barriers to
entry to individual payments systems may have a
range of unforeseen consequences.
INTRODUCTION
Retail payments systems are a key element
within the financial infrastructure of any
Journal of Financial Regulation and Compliance Volume 10 Number 3
Page 209
Journal of Financial Regulation
and Compliance, Vol. 10, No. 3,
2002, pp. 209–218
#Henry Stewart Publications,
1358–1988
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