Bank break-up a “mistake”: CBI chief

The new head of the CBI says it would be a “mistake” to break up the UK’s banks.

John Cridland told the Independent Commission on Banking (ICB), which is examining the future structure of the industry, that splitting apart banks' retail and investment arms could scupper economic growth, reports the BBC.

The ICB is considering a major revamp of UK banks and head John Vickers has said breaking up the banks is a possibility.

But Cridland says such a move risks damaging the UK's position as a leading global financial centre because other nations may not follow suit.

"Breaking up banks would be a mistake; we need a strong banking system to help support the economy and growth," he said in the CBI submission to the ICB.