Bank report suggests closing more Lloyds’ branches - Banking - News - Moneyfacts


Bank report suggests closing more Lloyds’ branches

Bank report suggests closing more Lloyds’ branches

Category: Banking

Updated: 13/12/2012
First Published: 11/04/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Customers of Lloyds Banking Group might soon have fewer branches in which to carry out their banking after the Independent Commission on Banking recommended it should be forced to sell off more of its outlets.

The commission, set up by the Government last June to review the UK banking industry following the financial crisis, has reached the conclusion that competition needs to be reinvigorated amongst the high street banks.

As part of its plans, the report suggests that Lloyds, which has around 30% of current accounts in the market, should be made to sell off some its branches.

The banking group, in which the Government holds a 41% stake, is already committed to selling around 600 branches in England and Wales.

This is under an agreement with European regulators who were concerned over the amount of power Lloyds holds in the banking sector because of its Government backing.

However, the banking commission now suggests that the Government should seek an agreement with the group to 'enhance the divestiture substantially'.

Lloyds has unsurprisingly rejected the idea, claiming it would not be in the best interests of its customers.

However, the group did throw its support behind the commission's suggestion that it should be made easier for customers to switch current accounts if they wish to do so.

Lloyds added that it had provided the commission with evidence of how a guaranteed seven day switching service could be put in place within the next two years.

Amongst the other proposals put forward by the commission was the ring fencing of a bank's retail activities from their riskier investment banking operations.

The commission also wants to increase the amount of money that banks have to keep in reserve in case of trouble, another measure designed to help prevent another financial crisis.

Find the best bank account for you - compare bank accounts

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

More people are switching current accounts

Competition in the current account market remains intense, which means if you’re not happy with your account for any reason, now’s a great time to switch! Happily, more and more people seem to be getting in on the switching action...

Financial services complaints continue to fall

Many people feel dissatisfied with their financial providers at times, but happily, it looks as though the most serious complaints are becoming less and less common.

Contactless spending hits yet another record

Contactless spending is going from strength to strength, hitting new records on a seemingly monthly basis - and it’s just broken yet another one, with monthly contactless spending having passed the £2bn mark for the first time.