CBI director-general John Cridland says breaking up the banks will damage UK businesses.
In its submission to the Independent Commission on Banking consultation, the businesses lobbying group says ensuring banks can finance a private sector recovery and support future growth should be the Government’s priority when reforming the system.
Cridland (pictured) warns policymakers “acting in isolation” on reform could jeopardise the UK’s position as a “world class” provider of financial services. He says: “Businesses value integrated services provided by large universal banks, so breaking up existing banks is not the way forward.
“Instead, structural reform should focus on establishing the necessary capital buffers, having effective recovery and resolution arrangements, and appropriate supervision.”