Theoretically, the inquiry could conclude that a break-up of the biggest banks is required, although such a move is unlikely.
Other potential outcomes could include a demand for more transparency over fees, such as overdraft charges, branch networks being split up, and proposals that could affect the future of "free" banking.
'Backward looking'
In a submission to the CMA, Barclays said it felt the review was "not appropriate at this time".
"Various developments, innovations and stimuli are changing the competitive landscape in in relation to both [personal current accounts] and [small and medium enterprises] banking, and these must be given time to mature," it added.
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Banks are pro-competition - they compete for business every day”
Anthony Browne. Chief executive, BBA
Lloyds Banking Group, which is still partly owned by the taxpayer, said that although it would work with the CMA, it did "not consider that such a reference is necessary", while HSBC, in its submission, said it was concerned that the CMA had previously "taken a backward looking view" of both current accounts and small business lending.
But the BBA, which represents the banking sector, said the industry would "co-operate fully with any investigation".
"Banks are pro-competition - they compete for business every day," said BBA chief executive Anthony Browne.
Business group the British Chambers of Commerce said it welcomed the review.
"For many years Britain's dysfunctional banking sector has struggled to meet the needs of [small and medium enterprises], impeding the growth prospects of some of our most promising young companies."
Some of the smaller players have also called for the inquiry to highlight the dominance of the big four banking groups - Lloyds, RBS, Barclays and HSBC.
"No market where such a small number of players hold such a large percentage of the market share should be described as efficient or competitive," said Craig Donaldson, chief executive of Metro bank.
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