Lloyds' new corporate structure will save cash

Lloyds Banking Group has decided to transfer its holding in HBOS to Lloyds TSB Bank in order to streamline reporting and disclosure requirements, cut costs and improve capital efficiencies.The part-nationalised lender said the new corporate structure sees Lloyds TSB become the immediate parent of HBOS, with Lloyds Banking owning HBOS indirectly.'This transfer follows a review by management of the structure of Lloyds Banking Group and a programme to develop and implement a legal entity structure that is efficient from a financial, regulatory and capital perspective,' read a statement late Wednesday.'The capital ratios of Lloyds Banking Group will not change as a result of this restructure.'Lloyds added that the proposed transfer of HBOS is not expected to have any impact upon staff or customers, whose relationships with banks will remain unchanged.It also said there is no intention to alter the banking licences in operation within Lloyds Banking Group, and that the 'current intention' is for both Lloyds TSB and Bank of Scotland to retain their banking licences.The proposed transfer has been given the thumbs up by the Financial Services Authority and the changes should become effective on 1 January.