British Bankers' Association Said Regulation Must Not Stifle Lending

Regulation must not stifle lending or hold back economic recovery the British Bankers' Association said tonight.

Responding to Lord Mandelson's annual Mansion House speech BBA chief executive Angela Knight said she welcomed the First Secretary of State's comment that the economic recovery could be threatened if banks face new regulations, combined with tighter capital and liquidity requirements, from different directions at the same time.

Mrs Knight said that banks were already acting to improve their own controls and to strengthen their balance sheets. She agreed with Lord Mandelson that action on regulation needed to be co-coordinated and action taken in step internationally.