Archbishop of Canterbury warns Osborne on banks

The Archbishop of Canterbury has accused Chancellor George Osborne of lacking the political will to break up the big banks.

The Most Rev Justin Welby - who sits on the Parliamentary Commission on Banking Standards - said he was risking a repeat of the "disasters" of the recent past through his refusal to take more decisive action.

The new Archbishop of Canterbury criticised Mr Osborne's banking approach Credit: Owen Humphreys/PA Wire/Press

The former oil industry executive said evidence made it clear that large, complex banks were not only "too big to fail, they are too big to manage".

However, the Chancellor defended a system based on "a small group of absolutely colossal banks" - including the mainly state-owned Royal Bank of Scotland.