The City
Media playback is unsupported on your device
Video

Banks agree Project Merlin lending and bonus deal

A long-awaited agreement with the largest UK banks on lending, bonuses and transparency has been announced by the government.

The Bank of England will monitor whether loans targets were being met.

However, Chancellor George Osborne formally ruled out imposing a bonus tax, despite pressure from Labour.

The BBC's Hugh Pym reports.

  • 09 Feb 2011
Go to next video: Banks angry at levy announcement