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Lending panel to monitor bank behaviour

The government is to set up a lending panel to monitor lending to both business and consumers.

Chancellor Alistair Darling announced the plan in his pre-budget speech and said it would "bring together the government, lenders, trade bodies, consumer groups, regulators and the Bank of England to monitor lending levels and practices by banks".

The panel will report to Darling and Peter Mandelson, secretary of state for the Department for Business, Enterprise and Regulatory Reform. It will be a large group - open to all lenders to join. Already at least ten banks have signed up, along with trade bodies such as the British Bankers' Association and the Council of Mortgage Lenders, plus advice providers Citizens Advice, Shelter and the Money Advice Trust. The Financial Services Authority and the Bank of England will be on the panel, as will the regional development agencies.

"We wanted everyone around the table so they can see the system and how it works," said a Treasury spokesman.

The Treasury said the panel will establish a reporting framework to allow improved monitoring of the mortgage market; encourage the highest standards of industry best practice in supporting borrowers with mortgage repayment problems; and promote better awareness of industry and government initiatives to find alternatives to repossession and allow borrowers in financial difficulties to remain in their homes.

It also takes the place of the group set up to monitor business lending following the first meeting of the Small Business Finance Forum last month.

This article was sourced from www.credittoday.co.uk

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