Private and corporate banking reform part of coalition government agreement

Private and corporate banking companies will be reformed under the new agreement between the Liberal Democrats and the Conservatives.

In a statement released yesterday (May 13th) by the Tories, the two parties have agreed the banking system needs to be changed to prevent future financial downturns occurring as a result of corporate and private bank practices.

A banking levy will also be introduced, although more talks are needed before exact details are released.

Corporate and private banking reform will help to sustain jobs and recovery, as well as support a competitive economy.

’We agree to bring forward detailed proposals for robust action to tackle unacceptable bonuses in the financial services sector; in developing these proposals, we will ensure they are effective in reducing risk,’ the report noted.

The Federation of Small Businesses recently welcomed plans by the two parties to encourage financial institutions to step up their lending to UK firms.ADNFCR-2318-ID-19775230-ADNFCR