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    Breaking up banks warning


    by ODN


    Breaking up Britain's biggest banks would be a mistake according to the CBI business group.

    In a stark warning to the Independent Commission on Banking (ICB), new CBI boss John Cridland said a break up would hold the sector back from supporting economic growth.

    Mr Cridland said banks must be strengthened to play a part in financing a private sector-led recovery.

    He added the UK risked damaging its position as a global financial centre by acting unilaterally.

    Part of his submission to the ICB reads: "Improving credit flows and providing relevant financial products to businesses will be critical to drive growth and recovery.

    "Financial services in the UK is a world-class sector, accounting for around 10 per cent of total economic output, so we must not jeopardise this position by acting in isolation on reforms."

    The Government-commissioned review by the ICB is looking at whether to break up banks in the wake of the financial crisis and to support competition.