JOB losses and branch closures will be weighed up as part of an investigation into Lloyds TSB's proposed take-over of Abbey National, the Competition Commission has said.

Its chairman Denise Kingsmill stressed that although the principal concern of the enquiry was to ensure any new company would not have an unfair monopoly on the banking market, it was within her public interest remit to include the impact of 9,000 job losses.

The proposed merger was referred to the independent commission by Trade Secretary Stephen Byers.

The reasons Mr Byers gave, were: "The proposed merger would lead to the elimination from the market of one of the most significant branch-based competitors to the UK's four largest banks", referring to Abbey National being swallowed up.

"This might result in a substantial lessening of competition, particularly in the market for current accounts."

A forum, held at London's Strand Palace Hotel yesterday, was the first of its kind in the respect of a commercial merger, bringing together the public and city specialists.

During the meeting a spokesman for the Citizens Advice Bureau raised his concerns that if branches were to close people with small business may suffer as they would be unable to pay in cash.

Mrs Kingsmill said that banking services for small businesses would be something the commission would be looking at, along with the mortgage market and insurance.