Miliband mulls cap on market share of banks

LABOUR leader Ed Miliband is reportedly planning to introduce a cap on the maximum market share of UK banks if he wins the next general election.

The leader of the opposition plans to legislate for a cap on how large a bank can become and will announce his plans on Friday, according to BBC Newsnight.

The move, for which there are few details, could force some banks to sell more of their branches in an attempt to promote competition in the sector.

Earlier today, Labour’s shadow chief secretary to the Treasury Chris Leslie criticised suggestions that the Royal Bank of Scotland (RBS) may ask the UK government to raise the EU’s cap on bank bonuses.

“As the majority shareholder, the government should reject any request from RBS to increase the cap,” said Leslie, who added that Labour will press the issue in the House of Commons tomorrow.

Labour has also argued since 2011 for an extension of the government’s levy on bankers’ bonuses to pay for a jobs programme for young people, and have advocated a more German-style system of regional banks.