The beleaguered British banking industry has faced angry politicians, regulators and consumers. This fall, a new player has joined the inquisition: a bespectacled bishop wearing a cross made of nails, The Wall Street Journal reported. The Right Reverend Justin Welby, Bishop of Durham, is grilling top bankers as part of a new parliamentary inquiry into "banking standards" that represents the U.K. government's latest attempt to shake up the industry.

Mike Ashley’s bid to rescue JJB Sports stores from closure is in jeopardy after an 11th-hour spat with Adidas, one of the sports retailer’s biggest suppliers, the Financial Times reported. Sports Direct, controlled by Mr Ashley, and Adidas are at loggerheads over the price at which it would take JJB’s Adidas stock under an administration, according to people familiar with the situation. A deal is thought to have been struck between Mr Ashley, the owner of Newcastle United football club, and KPMG, which is trying to find a buyer for JJB’s assets.

U.K. banks cut their lending to businesses and households in August, underlining the challenge facing policy makers as they struggle to boost the supply of credit and revive a stagnant economy, The Wall Street Journal reported. Figures released by the British Bankers' Association showed lending to nonfinancial firms fell by £1.5 billion ($2.43 billion) compared with July, a larger fall than the £500 million drop recorded in that month.

The government said on Monday it would allocate 1 billion pounds towards a new state-backed business bank designed to expand lending to smaller firms currently starved of loans from Britain's main lenders, Reuters reported. The government hopes its backing will be matched by a similar amount from private capital and could support up to 10 billion pounds of new and additional lending, Business Secretary Vince Cable said.

Debt-laden British retailer JJB Sports Plc said on Monday it was appointing administrators to sell its assets and brands after failing to receive an offer for the entire company, threatening thousands of jobs. A familiar sight on Britain's high streets with about 180 stores and 4,000 employees, JJB has been battling falling sales and stiff competition from larger rival and aggressive discounter Sports Direct International Plc. Sports Direct is seen as a potential bidder for some JJB stores.

George Osborne has a problem. The U.K. chancellor of the exchequer has staked the government's credibility on two fiscal rules designed to address the country's high deficit and burgeoning debt, The Wall Street Journal Heard on the Street blog reported. The first has proved slippery, since it requires the elimination of the structural budget deficit over a rolling five-year period—potentially delaying it indefinitely. But the second target is harder to fudge: that net debt as a share of GDP should be falling by 2015-16. Many economists believe he is likely to miss this.

Three international banks that backed out of $10 billion debt restructuring talks with an investment company controlled by Dubai's ruler said Thursday they are now pursuing legal action against the firm, dashing hopes of a consensual deal, The Seattle Times reported on an Associated Press story. The move by Britain's Royal Bank of Scotland, Commerzbank of Germany and South African lender Standard Bank will likely further complicate Dubai Group's efforts to move beyond its debt troubles after more than a year and a half of negotiations with creditors.

The U.K. unemployment rate rose in July, ending a streak of seven consecutive months of unchanged or declining jobless levels that confounded economists, and adding to an outlook of economic gloom for Britain's contracting economy, The Wall Street Journal reported. The Office for National Statistics said Wednesday that in the three months to the end of July, the number of people without jobs grew by 28,000 from the same period ending in June, pushing the unemployment rate to 8.1% from 8.0% the data showed.

Britain faces a fresh fight with Brussels over who has control over the City of London, as it confronts a key element of the plans for eurozone banking union that makes it easier for London to be overruled on contentious matters of supervision, the Financial Times reported. In a proposal that will cause alarm among eurosceptic MPs, the European Commission will on Wednesday unveil reforms that strengthen the European Banking Authority, which co-ordinates rulemaking between the EU’s national supervisors.

Burberry Group PLC issued a surprise profit warning on Tuesday and reported its worst same-store sales figures since the financial crisis, raising concerns about a slowdown in the luxury sector, where companies are feeling the pangs of a decelerating China and macroeconomic uncertainty world-wide, The Wall Street Journal reported. The British fashion house, known for its classic trench coats and Haymarket check, is scheduled to report full quarterly sales figures in October.