Banks will be told to make it easier for customers to switch accounts in a major new report into the sector by the Competition and Markets Authority (CMA).

The CMA is worried that the market is dominated by the big four banks - Barclays, HSBC, Lloyds and RBS.

The CMA wants the retail banking market to help customers shop around for a better deal.

Bank charges are ''complicated and opaque'' and many customers see switching banks as ''risky'', the watchdog has said.

The CMA has previously suggested banks should cap customers' monthly unarranged overdraft costs.

It also wants new online comparison tools to be developed to help customers compare deals.

Nearly 60% of personal customers have stayed with the same bank for more than 10 years and more than 90% of SMEs get their business loans from the bank where they have their current account.

If personal customers switched to a cheaper deal for their needs, the CMA said the annual savings could be on average £116.