The comments to the parliamentary Treasury Committee came as data from the British Bankers Association on Wednesday showed that U.K. businesses made net repayments on their debt in October.
Nonfinancial companies made a net repayment of £700 million in October, after borrowing £1 million in September, confirming the continuing uncertain tone of business at the moment as the euro-zone sovereign debt crisis rumbles on and concerns over the U.K.'s economic situation grow. Meanwhile, seasonally-adjusted net mortgage lending grew £900 million in October, just up from the £800 million increase in September, but weaker than the £1.3 billion increase reported a year earlier.
The role of bonuses in business decisions was raised after Robert Jenkins, a member of the Bank of England's Financial Policy Committee, Tuesday said banks should cut bonuses to help bolster their balance sheets, and accused banks of falsely claiming regulatory reforms could harm the economy.
Messrs. Hester and Flint and Ms. Botin were testifying along with Tim Tookey, interim CEO of Lloyds Banking Group PLC. The government has pledged to have a formal response to the ICB report by mid-December and will then start drafting legislation.
The ICB is calling for banks to hold as much as 20% capital against their assets—far more than international peers—and to segregate, or "ring fence," their retail arms from other activities. The ultimate aim of the rules is to reduce the chances of any taxpayer bailouts of the sector, after a debilitating financial crisis for the country.
Nonfinancial companies made a net repayment of £700 million in October, after borrowing £1 million in September, confirming the continuing uncertain tone of business at the moment as the euro-zone sovereign debt crisis rumbles on and concerns over the U.K.'s economic situation grow. Meanwhile, seasonally-adjusted net mortgage lending grew £900 million in October, just up from the £800 million increase in September, but weaker than the £1.3 billion increase reported a year earlier.
The role of bonuses in business decisions was raised after Robert Jenkins, a member of the Bank of England's Financial Policy Committee, Tuesday said banks should cut bonuses to help bolster their balance sheets, and accused banks of falsely claiming regulatory reforms could harm the economy.
Messrs. Hester and Flint and Ms. Botin were testifying along with Tim Tookey, interim CEO of Lloyds Banking Group PLC. The government has pledged to have a formal response to the ICB report by mid-December and will then start drafting legislation.
The ICB is calling for banks to hold as much as 20% capital against their assets—far more than international peers—and to segregate, or "ring fence," their retail arms from other activities. The ultimate aim of the rules is to reduce the chances of any taxpayer bailouts of the sector, after a debilitating financial crisis for the country.
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