A strong mutual sector should be promoted, the Independent Commission on Banking has been told.

The Building Societies Association (BSA) said that diversity should be a key part of the Independent Commission’s inquiry following the latter’s publication of its Issues Paper.

Adrian Coles, BSA Director-General, said: “The Commission rightly draws attention to the fact that the UK retail market is especially concentrated compared to other overseas markets. We hope the Commission examines in great detail the ways in which the dominance of a small number of large state-backed banks in the provision of mortgages