Lloyds Banking and Royal Bank of Scotland, Britain's two state-controlled banks, should be split up according to the former City minister Lord Myners."The future lies in less monolithic institutions, with more fluid entries into and out of the banking sector," the Labour peer wrote in the FT today."In practice, the banking commission must therefore give proper consideration to splitting one or both of Lloyds Banking Group and the Royal Bank of Scotland," he wrote.His comments are a sea change from his days as a minister and echo comments from members of the recently convened Independent Commission on Banking.It is currently assessing whether the UK's big banks are too powerful and too entrenched for competition ever to thrive.Clare Spottiswoode, a member of the Commission and former gas regulator, has already stated publicly that a break-up of Lloyds and HBOS is a possibility.LLoyds merged with HBOS in October 2008 to stave off a possible collapse of HBOS, but the scale of its problems subsequently meant the enlarged bank needed to be rescued by the UK taxpayer. Lloyds is currently 41% owned by the government with Royal Bank of Scotland 84% taxpayer-owned.