Banks 'should publish lending data'

Banks should be required to publish information about how much they are lending in different parts of the country, Labour has said.

Greater transparency is needed to highlight "gaps in the market" that need addressing, said the party.

It has launched a policy review to explore ways of ensuring banks are open about what they are lending and to whom.

In its review document, it said there were "too many tales of reasonable applications being turned down, of staff in remote locations rejecting applications and bank branches that used to provide serious advice being closed or no longer offering face-to-face personal and business advice".

"Consistent disclosure by the banks of anonymised data on what they lend, to whom and where; and stronger incentives to work in all communities including with community 'banks' etc will help banks become more accountable to the communities they serve," said the party.

"Over time it will help government, banks themselves, community banks and the third sector plug the gaps in the market for access to financial services. It is right that a banking sector which has benefited from around £1 trillion of capital and guarantees is forced to provide greater transparency."

Shadow financial secretary to the Treasury Chris Leslie said: "Shining a spotlight into the patterns of banking activities across the country should help shift the balance between banks and consumers."