Bank pay talks were constructive, says government

A government spokesperson has described this week's talks between senior ministers and bank executives over bonuses and lending as "constructive".

The meeting saw bank leaders make a pledge to offer loans of £200 billion to businesses, but it is thought the major issue of remuneration remains unresolved, the Guardian reports.

Business secretary Vince Cable is keen to see greater disclosure on the way bankers are paid, although his role in the so-called Project Merlin talks was overshadowed by controversy regarding comments he made to undercover reporters about Rupert Murdoch's bid for BSkyB.

Liberal Democrat ministers have also called for banks to show restraint on payouts in the forthcoming City bonus round.

Further discussions of the bonus issue are now due to take place over the Christmas period, according to the government.

"The banks have put a number of proposals on the table. The government affirmed its desire to see a strong, responsibly and internationally competitive financial sector," the spokesperson added.