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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/02/cbi-warns-against-breaking-up-banks.jpg"><img class="alignnone size-full" title="CBI leader John Cridland said the UK risked damaging its position as a global financial centre by acting unilaterally" src="http://londonglossy.com/wp-content/uploads/2011/02/min-cbi-warns-against-breaking-up-banks.jpg" alt="CBI leader John Cridland said the UK risked damaging its position as a global financial centre by acting unilaterally"/></a></p>
<p>Breaking up Britain&#8217;s biggest banks would be a mistake and could hold the sector back from supporting economic growth, the CBI business group has said.</p>
<p>In a stark warning to the Independent Commission on Banking (ICB), which is considering a major overhaul of UK banks, new CBI boss John Cridland said rather than breaking up the big players, banks must be strengthened to play a part in financing a private sector-led recovery.</p>
<p>Mr Cridland, who took over as director general of the CBI last week, stressed the UK risked damaging its position as a global financial centre by acting unilaterally.</p>
<p>He said in the CBI&#8217;s submission to the ICB: &#8220;Breaking up banks would be a mistake; we need a strong banking system to help support the economy and growth.&#8221;</p>
<p>He added: &#8220;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% of total economic output, so we must not jeopardise this position by acting in isolation on reforms.&#8221;</p>
<p>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.</p>
<p>ICB chairman Sir John Vickers said in a speech last month the commission was considering splitting retail and investment banking operations to make banks safer and less at risk of taxpayer bail-outs.</p>
<p>But the CBI said reforms should focus on tightening capital buffer requirements and regulatory supervision rather than a full-scale restructure.</p>
<p>&#8220;Businesses value integrated services provided by large universal banks, so breaking up existing banks is not the way forward,&#8221; said Mr Cridland.</p>
<p>Its submission argues that large businesses need large, universal banks to support them and provide one-stop shop access to business banking, funding markets and services to reduce foreign exchange and commodity risks.</p>
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