George Osborne, the UK Chancellor of the Exchequer, is this afternoon expected to endorse the Vickers Report on the industry in full, with key terms including the “ring-fencing” of retail and investment banking activities and the imposition of minimum capital ratios that go beyond European regulations.

But while few expect any meaningful dilution of the proposals on ring-fencing retail and investment banking activities, it is hoped there will be some room for manoeuvre for the banks - in that they will be able to decide on which side of the fence activities such as corporate lending will sit.