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UK's Brown tells banks lending is key to growth

Published 04/07/2009, 01:42 PM
Updated 04/07/2009, 01:48 PM

LONDON, April 7 (Reuters) - Extending lending to businesses is central to restoring growth and saving jobs, British Prime Minister Gordon Brown told bankers at a meeting on Tuesday.

He also said the banking sector needs to reform if London is to remain a global centre for financial services, his office said in a statement.

"The financial sector would continue to be integral to Britain's future prosperity, but it must be reformed to reflect the changing global circumstances we face," the statement noted.

"The prime minister highlighted the fact that all G20 countries had agreed last week that extending lending is central to the restoration of growth and jobs."

Brown on Monday met with Bank of England Governor Mervyn King to start discussions on how Britain will implement the agreement G20 leaders reached last week on banking supervision and regulation of tax havens.

His office said the government would also launching a series of regional events on Thursday, to publicise assistance schemes for businesses. (Reporting by Frank Prenesti; Editing by Ron Askew)

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