Royal Bank of Scotland has said that it will not split the company into ‘good’ and ‘bad’ banks, but instead ring fence a ‘bad bank’ of bad assets internally.
Lloyds Banking Group, which is part-owned by the UK government, posted a profit of £2.1 billion in the first six months of 2013.
George Osborne has said that the government will support most of the recommendations produced by the Parliamentary Commission for Banking Standards.
The Parliamentary Commission on Banking Standards has produced its long-awaited report on the financial sector, which attacks the lack of accountability of bankers for their actions and said bonuses should be deferred for ten years to prove success.
Britain’s twelve top high cost lenders, some charging interest of more than 4000%, made almost £1 billion in profits in the last 12 months according to a recent investigation.