Lloyds TSB is expected to tell regulators today what concessions it is prepared to make to win clearance for its £19 billion sterling bid for Abbey National.
Lloyds is believed to be prepared to sell mortgage arm Cheltenham & Gloucester and revamp its current account range to get approval, said industry sources.
Lloyds' bid for Abbey National was referred to the Brotish competition commission in February - primarily because the combined group would have about 27 per cent of British current accounts.
Alternatively, Lloyds might offer higher interest rates on current accounts, which are typically around 0.1 per cent at Britain's big four banks. But analysts said this would be costly.
If Lloyds gets clearance for the deal, it would mark another round of consolidation in British financial services, where banks are finding partners to drive revenues and cut costs in a market where returns are coming under pressure from competition.
Bank of Scotland and Halifax have just agreed a merger, seen by some as boosting Lloyds' chances of getting a green light from the commission for its Abbey bid.
Banking industry sources say the remedies would not necessarily tackle the central issue of the Lloyds deal: removing a competitor from the British financial services arena.