Banking shares could be volatile this week ahead of the Independent Commission on Banking's (ICB) report, which may suggest the break-up of high street lenders.
The commission will release its interim report next Monday, with speculation it could lead to 'functional subsidiarisation'. This would mean a split between investment banking and retail operations, where each division has separate cash cushions to absorb financial shocks, the Daily Mail reports.
However, the industry is lobbying the ICB to lean towards 'operational subsidiarisation', which would see parts of a bank considered crucial to customers (such as deposit-taking and business lending) sealed off as separate entities.
The ICB will make its final recommendations to Chancellor George Osborne in September.
Its report follows another damning report from the Treasury Select Committee, which criticised the UK's "oligopolistic" banking industry, noting how a handful of banks control 85% of the market.
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An added tier of asset management can of course deliver additional benefits for certain investors, writes Graham Bentley - just be sure you can justify it to the regulator and, especially, the client