Lloyds sells branches to Co-op

Lloyds Bank have announced the Coop bank will be its preferred partner for the sale of 632 bank branches. This is great news for businesses, as the Coop offer all Federation of Small Business  free banking, which is always welcome. Business and consumers alike should be pleased at the news, as the Coop will become the UK’s seventh largest bank if the sale goes ahead giving the Coop greater presence on the high street and giving us all more choice.

Lloyds will now negotiate the sale exclusively with the Coop, leaving the Coop’s competitor for the sale, new bank venture NBNK who provide supermarket finance, out in the cold.

The deal would see 632 bank branches move over to the Coop including all Cheltenham and Gloucester branches and Lloyds TSB Scotland branches. As well as this portfolio, a selection of Lloyds TSB branches in England and Wales would be transferred to the Coop. Lloyds is being forced to sell the branches by the European Commission competition authorities. The deal is expected to be completed in the first quarter of 2012.

In another piece of good news, this time from government, Business Secretary, Vince Cable has announced the government will accept the recommendations of the Vickers report into banking in full. This will mean that retail and investment banking will be separated.

The Vickers report’s recommendations are designed to stop banks getting into serious trouble and to avert any similar financial disasters to those witnessed during the credit crisis of 2008. The report also wants to see steps put in place immediately to make sure businesses and consumers can easily switch current accounts. Which is good news for the consumer.

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