1. Banking Market Concentration

2. Slide 2 The Sample of Countries RankHungary Domestic? Switzerland Domestic? Sweden Domestic? N Zealand Domestic? Norway Domestic? 1st26.2Yes46.2Yes23.8Yes25Yes38Yes 2nd9.3No21.5Yes22.9Yes14.7No13.9No 3rd8.9No3.6Yes19.4Yes14.1No7.8No 4th8.9No2.9Yes17.1Yes13.5Yes4.4No 5th8.1No1.9No9.6No12.9Yes3.2Yes 6th7.8No1.3No1 10.7Yes3.1No Country Population 10 7.7 9.3 4.3 4.9 The 5 countries below were chosen as comparisons to Scotland based upon level of economic development and population size. Data is sourced from the Economist Intelligence Unit Banks were ranked based upon their share of total banking sector assets within each country, and were also split by either domestic or non-domestic headquartering. Switzerland is the most comparable country to Scotland, with UBS and Credit Suisse comparable in size and scope to Lloyds and RBS in Scotland.

3. Slide 3 Comparison of Market Concentration The chart to the right shows banking sector concentration based upon total market share of the top 2, 3, 4, and 6 banks in each country. We found that in our comparable countries, the top 2 banks held 35% - 68% of the total market share. Swiss banks are at the high end of market share, with UBS and Credit Suisse making up 68% of all in- country banking sector assets. Whilst market structure can be informative, it is not necessarily the key determinant in competitiveness. As the Independent Banking Commission recognises, behavioural factors have greater importance. ConcentrationHungarySwitzerlandSwedenN ZealandNorway Top 235.567.746.739.751.9 Top 344.471.366.153.859.7 Top 453.374.283.267.364.1 Top 669.277.493.890.970.4 Bank Concentration in Countries Compared to Scotland 0 10 20 30 40 50 60 70 80 90 100 HungarySwitzerlandSwedenN ZealandNorway Concentration Top 2 Top 3 Top 4 Top 6