UK and banks strike deal on pay and loans: minister

9th February 2011, Comments 0 comments

Britain's government and major banks have agreed a deal on bankers' pay and bonuses and the amount of loans they will grant to businesses, Chancellor of the Exchequer George Osborne said Wednesday.

He said total bonuses paid to British-based staff of Britain's four biggest banks will be lower than last year as part of the deal.

"This morning the heads of the major British banks -- Barclays, RBS, Lloyds and HSBC -- reached a new settlement with the British government," Osborne told parliament.

"The banks will lend more money especially to small businesses, pay more tax, pay less bonuses, be more transparent about the bonuses they do pay and make a greater contribution to our regional economy and society."

He added: "The four major banks have also agreed that total bonuses will be lower than last year and lower than they would have been without today's settlement."

© 2011 AFP

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