The Treasury Committee is to inquire into the required divestment of 632 branches of Lloyds Banking Group, otherwise known as ‘Project Verde’, and the collapse of The Co-operative Bank’s bid for these branches.

The initial evidence session will take place on Tuesday 18 June with António Horta-Osório, group chief executive of Lloyds Banking Group, and Sir Winfried Bischoff, chairman of Lloyds Banking Group, appearing before the Committee.

Andrew Tyrie MP, the chairman of the Treasury Select Committee, said: “This divestment should be an important opportunity to boost competition in the UK retail banking market. It could have significant benefits for consumers.

“We will want to know how The Co-operative Bank’s bid was allowed to progress to such an advanced stage, why it collapsed and what will now happen to these branches and their customers.”