The Independent Commission on Banking in UK recommended UK's biggest banks to increase Tier 1 capital levels by 10% in order to construct an orderly manner for bankruptcy. The commission acknowledged UK's biggest lender's concerns in the 208-page publication that will be released today, in addition, the commission called Lloyds Banking Group PLC to divest more branches.

Rather than pursuing more radical policies towards capital or structure, the approach outlined is a combination of more moderate measures, the report said. They nevertheless entail costs to banks, some of which fall on the wider economy.