Bank balance

Yet, while there are those who contend that the Government should now sell its stake in the nationalised banks, Ministers should resist doing so. Their job is to maximise the taxpayers' return and the rewards could become greater as the economy picks up.

Retaining the public state also sees the Treasury retain influence over banking a policy – and it is important that this continues. For, in heralding his firm's results, it was noteworthy that Eric Daniels, the group chief executive of Lloyds, did not specifically highlight the extent to which taxpayers bailed out his bank. That was remiss of him.

So, too, was his dismissive tone when it was asserted that there were many viable businesses being denied vital credit because of draconian restrictions imposed by banks, or the downgrading of overdraft

facilities without any consultation with the firm concerned.

If Mr Daniels says this is not a problem, why are so many businesses complaining about their harsh treatment by the banks – and why did David Cameron, the Prime Minister, see fit to, once again, raise this issue with Mervyn King, the Governor of the Bank of England, yesterday?

This is an overwhelming reason why the Government must resist the temptation to sell its stake in banks like Lloyds. For, as soon as it does, the bonus culture will return – and there will be even less that Ministers can do to persuade the banks to assist the private sector recovery.