---

Banking Bill

We, too, have some sympathy with the amendment for the reasons that have been given. As we move forward beyond the Bill, one question to which we will want to return is how greater competition within the banking sector can be introduced. One way would be to develop some aspects of the system that are currently relatively undeveloped, not least in respect of banks at the bottom end—credit unions and community banks—which are being considered in a number of places. In this context, we will be fascinated to see how the noble Lord, Lord Hanningfield, progresses with the Bank of Essex, which is an interesting innovation. Going forward, I think that there is scope for more local banks and regional banks, and those will provide a way of reintroducing a greater degree of competition than we will be left with as a result of the events of the past few months.