Britain 'should take inspiration from German banking system'

14 March 2013

Policymakers in Britain should look to Germany for inspiration on how they should go about restructuring their country's banking system.

That is the opinion of Ed Miliband, leader of the opposition, who has called for wholesale changes to be made to the UK's financial sector after lenders such as Royal Bank of Scotland and Lloyds Banking Group required state-funded bailouts at the height of the global crisis.

In a speech to be delivered at the annual conference of the British Chambers of Commerce in London today (14 March), the Labour leader will say his party will oversee significant banking reforms if it is successful in the next general election.

"We do not just need a single investment serving the country. We need a regional banking system serving each and every region of the country," the politician will say.

Mr Miliband is expected to go on and say that people must be able to trust the financial system in their region and is set to cite the German Sparkassen - a network of smaller financiers that only lend in their area and look to promote local growth - as an ideal example to follow.

By Claire Archer

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