Of all the main banks, Lloyds is happiest with the outcome of the final report. That is because the Commission performed a U-turn on its recommendation for the bank’s sale of 632 branches.
Whereas in its April interim report, the ICB said that Lloyds should “substantially enhance” its sale to include more branches, it has now shifted this stance to wave through a sale so long as it creates a “viable challenger bank” with at least six per cent of the personal current account (PCA) market by 2015. In effect, Lloyds believes that this recommendation will have little bearing on the sale.
In addition, most of Lloyds’ activities will be inside the ring-fence, requiring minimal structural change.