Barclays and the RBS, the UK lenders most exposed to investment banking, emerged as the unlikely winners of Monday’s Independent Commission on Banking review after the body stopped short of recommendations that would have cost them billons of pounds in extra funding costs.

The shares of Barclays and RBS surged 3.1% to 306p and 2.5% to 44.5p respectively after fears that the commission would recommend a total break-up of banks' retail and investment banking units were allayed.