Initial Response to The Cruickshank Review

Lloyds TSB Group PLC
20 March 2000



LLOYDS TSB'S INITIAL RESPONSE TO THE CRUICKSHANK REVIEW 

Based on an initial review of 'Competition in UK Banking', Lloyds TSB this
morning made the following comments on Mr Cruickshank's recommendations.

We are pleased that the report recognises that the market is becoming
increasingly competitive.  By his own international comparisons, UK consumers
get value for money from the UK banks.

We agree with his conclusions on transparency and are working to bring greater
clarity to  consumers' understanding of the products and services we offer.

We need to look at the detail of his recommendations on money transmission. 
We believe that the current system is one of the most effective money
transmission systems in the world.

Whilst SMEs were a major focus of this review, after sixteen months, Mr
Cruickshank has not identified any substantive criteria by which SMEs are
disadvantaged.  We see no reason for yet another competition inquiry of the
SME sector but we have nothing to fear.  We believe that the small business
sector is competitive.  There are no barriers to entry in this market - only
the inherent riskiness of the sector over the business cycle.

Michael Fairey, Deputy Group Chief Executive of the Lloyds TSB Group, said:

'Competition in the banking industry has never been so fierce.  The landscape
is changing beyond recognition as we witness an explosion of new entrants
coming into this market.'  


For more information:
Lloyds TSB Press Office 
Tel:  [phone]