The British Bankers’ Association has released the following statement on bank restructuring:
"The Chancellor's announcement that there is to be a restructuring programme for those banks where there is a major public stake is neither unexpected or surprising. We were aware last week about plans for Northern Rock and, generally, it was always intended that public support should be short term. It is also well-known that discussions about state aid have been continuing with the EU authorities. It will take some time for these plans to work through and this is in line with EU Commissioner, Neelie Kroes' statements that state aid should be wound down over 3 - 4 years.
The UK has a highly competitive retail banking sector already offering greater customer choice than in many other countries. The BBA has always welcomed competition for high street banking services and choice for customers.
The UK needs a successful banking sector and any plans need to ensure the UK remains both internationally competitive and should help maintain the financial services industry's leading global position. We look forward to seeing the details of the proposals in due course."
View BBA statement on bank restructuring, 2 November 2009