"The Independent Banking Commission"s interim report representsan important and welcome signpost in the on-going process ofdiscussion and consultation that will help to shape its finalrecommendations, due for publication in September.

"However, we must remember that this is an interim report; atthis point, nothing is certain and nothing has been decided.

"Any future reforms must strike a balance between addressing theunderlying problems whilst safeguarding our internationalcompetitiveness."Additional comments"The ICB has a difficult but vital job to perform and it isquite right that it investigates all the options to promote greaterstability and competition within UK banking.""UK banks have already implemented significant reforms toincrease stability and limit excessive risk taking and a great dealof progress has been made at an international level. Given theglobal nature of the industry, this is exactly the approach weshould be taking.

"Striking out on our own - although expedient politically -could severely compromise our international competitiveness whilstoffering no guarantees of increased stability or competition withinUK banking."