The Parliamentary Commission on Banking Standards, set up by the government last year after Barclays

LONDON, June 19 (Reuters) - The fate of Britain's two state-controlled banks will become clearer on Wednesday, when finance minister George Osborne is likely to start the clock ticking for the sale of the government's stakes.
But while Osborne will attempt to point to a healthier future for Britain's economy and banking sector in his annual speech to financiers in the evening, reminders of recent troubles will not be far away.
An influential panel of legislators called for new laws on Wednesday to make it easier to jail reckless bankers. Speaking alongside Osborne will be Bank of England Governor Mervyn King, whose disdain for investment banking is clear.
Moreover, although Britain's economic recovery looks to be on a firmer footing than a few months ago, it is still sluggish car rental malaga airport pick up and vulnerable to a global slowdown, and would benefit from a banking industry better-placed to support business investment.
Britain's previous Labour administration pumped 66 billion pounds ($103 billion) car rental malaga airport pick up of public money into Royal Bank of Scotland and Lloyds Banking Group in 2008 to save them from collapse at the height of the global financial car rental malaga airport pick up crisis.
Osborne's Conservative-led government has pledged to return car rental malaga airport pick up them to the private sector, but has not set a date - something which should change later on Wednesday when he speaks at Mansion House, the Lord Mayor of London's grand official residence.
Selling some of the government's 81 percent stake in RBS and 39 percent in Lloyds before Britain's next national election in May 2015 could help support Conservative claims that it has got Britain's economy on the mend.
Although Prime Minister David Cameron said last month he was "open to ideas" over an RBS sell-off, its shares remain well below the government's car rental malaga airport pick up break-even level, with taxpayers currently sitting on a loss.
The Parliamentary Commission on Banking Standards, set up by the government last year after Barclays was found to have manipulated global interest rate benchmarks, also said Osborne should immediately consider alternative options car rental malaga airport pick up for RBS.
As such, economists said King was likely to focus on the need for firm bank regulation - where he has backed tougher leverage rules than Osborne favours - rather than to announce a new support scheme for the economy, as happened last year.
Last year's Mansion House speech brought the Funding for Lending Scheme, a joint project of Osborne and King's. It offers banks cheap credit and has made mortgages easier to get but has yet to spur greater business investment.