For two of Britain’s biggest banks, October marks crunch time. The future of Lloyds Banking Group and Royal Bank of Scotland will be laid bare as they hear what they must to do comply with European state aid rules and juggle plans to raise fresh equity and insure toxic assets in the government’s asset protection scheme (APS).

By the end of the month Neelie Kroes, the EU Competition Commissioner, is expected to decide exactly what concessions Lloyds must make as it integrates HBOS. She will also rule on the state aid that Lloyds and RBS have received.