British banks plan task force to respond to standards probe

* Biggest banks may make coordinated response to MPs

* PCBS expected to publish report on Friday - sources

LONDON, June 12 (Reuters) - Executives at Britain's topbanks may form a task force to respond to a report due this weekfrom an influential committee of lawmakers examining standardswithin the industry, banking sources said on Wednesday.

The proposal would see the chief executives from Britain'sbiggest six banks - Barclays, HSBC, Royal Bankof Scotland, Lloyds Banking Group, StandardChartered and Santander UK - produce acoordinated response to the report, which is expected to bepublished on Friday, the sources said.

The Parliamentary Commission on Banking Standards (PCBS) wasset up by the government last July with a remit to examineethics within the industry after Barclays was fined forattempting to manipulate global interest rate benchmarks.

Bank executives have discussed the task force plan with theindustry's lobby group, the British Bankers Association (BBA),but will not make a final decision on whether to proceed untilafter the commission's report is published, the sources said.

The task force would be chaired by Nigel Wicks, the BBAchairman.

The 600-page PCBS report is expected to make sweepingrecommendations, including changes to bankers' bonuses, a newprofessional register for bankers and the inclusion of criminalsanctions in tougher penalties against executives at failedbanks.

It is also likely to reiterate the commission's previouscall for legislation enabling regulators to break up banks thatdon't stick to rules ring-fencing their routine retailoperations form riskier investment banking activities.

Among the most eagerly awaited contents of the report willbe recommendations on the future of state-backed RBS and Lloyds,plus suggestions on how to stimulate competition within theindustry.