The outgoing chief executive, Peter Marks, says the Co-op will develop its banking operation over the long term.

BBC: Will Co-Op pull out of banking?

Mr Cable suggested in his speech that the future business bank could work with commercial banks such as the UK's Co-Op, and the British operation of Swedish lender Handelsbanken.

BBC: Cable confirms government plans for a business bank

Or to put it another way, the proposed takeover of the Lloyds operation - which is called Verde - is forcing the Co-Op to re-evaluate its future in a fundamental way.

BBC: The threat to Co-op��s plan to be a bigger bank