The government is concerned banks will not honour a pledge to preserve the 'last bank in town' after Lloyds announced plans to close 150 branches and cut 9,000 jobs.
ITV News Political Correspondent Emily Morgan reports:
Business Secretary Vince Cable is set to write to big banks urging them to keep branches open in towns where there are no other banks open.
It follows an announcement from state-backed Lloyds bank that it is going to close 150 branches and make 9,000 staff redundant.
ITV News Business Editor Joel Hills is following developments.
Vince Cable to write to all big banks to ask them to voluntarily recommit to retaining branches in towns where they're the last bank open.
The Unite union has said that job losses announced by the Lloyds Banking group represent "deeply unsettling times" for staff.
These are deeply unsettling times for Lloyds staff, who, after days of speculation and leaks, face yet another round of job cuts and a future of uncertainty.
Job cuts of approximately 10% could have unknown consequences on customer service and will put even more pressure on staff who have helped get the bank back on the right track.
Lloyds balance sheet had to take into account one off charges including a £900 million increase in provision for payment protection insurance (PPI) scandal. It takes the running total of the sum set aside for PPI by Lloyds to £11.32 billion.
Over the last three years the successful delivery of our strategy has ensured that we have become a safe, highly efficient, UK-focused retail and commercial bank.
The next phase of our strategy will use these strong foundations as a basis for meeting the rapidly-changing needs of our customers, and sets out how we will grow the business in a way that will deliver increasing and sustainable returns for our shareholders.
The job cuts announced by Lloyds represent around 10% of its current workforce of 88,000. It has already slashed more than 30,000 since the start of the financial crisis.
The group, which is 25% owned by the taxpayer, said it plans to "digitise" the bank, adding that it wants to simplify the business and be more efficient.
Meanwhile, third-quarter results showed underlying profits for the business, which includes Halifax and Bank of Scotland, up 41% to £2.2 billion.
Bottom line pre-tax profits were £693 million after taking into account one-off charges including a £900 million increase in provision for payment protection insurance (PPI) scandal.
The Taxpayer-backed Lloyds Banking Group is to cut 9,000 jobs over three years and shut 150 branches, it announced.
At least 9,000 jobs will be axed at Lloyds Banking Group over the next three years along with an unknown number of branch closures, Reuters has reported, citing sources.
The cuts would amount to 10 per cent of Lloyds' workforce and follow some 30,000 job axings by the company since the financial crisis of 2007 to 2009.
Reuters reported the job cuts will be announced by Chief Executive Antonio Horta-Osorio in a three-year strategy review next week.
The report said the increase of online transactions and automated bureaucracy will lead to the closure of some branches.
Shares in Scotland-based financial institutions Royal Bank of Scotland, Lloyds Banking Group and Standard Life fell by more than 2% in the wake of the latest opinion poll.
Perth-based energy supplier SSE was also fell.
Edinburgh-based Standard Life, which has been based in Scotland for 189 years, recently complained that it was still in the dark over "material issues" surrounding independence.