Member Article

Businesses need a healthy banking sector to drive growth, says CBI

The CBI said today that ensuring banks can finance a private sector recovery and support future growth should be the Government’s main consideration when reforming the banking system.

In its submission to the Independent Commission on Banking consultation, the UK’s leading business group also stressed that reforms must be globally coordinated to maintain and strengthen the UK’s position as an international financial centre.

Banking and financial services play a significant role in society, so building a competitive but resilient sector, free from taxpayer support, will be crucial.

John Cridland, CBI Director-General, said: “A healthy economy needs a healthy banking system, and the top priority must be financial stability for all.

“We must strengthen our banks for the future, without relying on the taxpayer. Improving credit flows and providing relevant financial products to businesses will be critical to drive growth and recovery.

“Financial services in the UK is a world class sector, accounting for around 10% of total economic output, so we must not jeopardise this position by acting in isolation on reforms.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .