Financial Markets

I am grateful to the hon. Gentleman. He is right that we need to proceed with caution. I said that I thought that the step that we are taking is essential, because stabilising the banking system is a precondition of helping the very people whom he talks about. After all, we are helping people and businesses in this country and, through them, the whole economy. That is why we are taking this step. Last week, Members on both sides of the House said that one of the things that they wanted was the freeing up of lending to businesses and mortgage payers. Indeed, the shadow Chancellor mentioned that issue specifically. That is precisely what we have sought to achieve with the institutions with which we have these agreements. We are not saying that they should simply lend, willy-nilly, to anyone who turns up; that would be ludicrous. They must assess how much someone can afford to borrow, and whether there is adequate security. Banks have got to ensure that their lending is prudent and properly thought out, and the availability of funds will help. That is what Members on both sides of the House want, but nobody wants a return to the more irresponsible practices of the past. The hon. Gentleman asked about board membership. It is important that we nominate people who have the relevant experience and can bring their influence to bear. I have made this point before: the boards are the first line of defence, not just in preventing banks from getting into difficulties, but in the wider system. I agree with the hon. Gentleman on co-operation among countries. We had extensive discussions at the G7 meeting in Washington over the weekend, and at the IMF. He asked about China; it is, of course, a member of the G20, which we will chair in the coming year. The governor of the Chinese central bank was present at the IMF discussions and, I think, at the G20 meeting. The hon. Gentleman made a point about the eurozone. Of course, we are not members of that group, but my right hon. Friend the Prime Minister addressed it yesterday, because it was recognised that Britain is an extremely important part of not just the European financial system, but the global financial system. It is quite right that our views are taken into account, and equally right that if we are to convince people that we need to act together, we need to be involved at every level. That is another advantage to our being fully involved in the European Union; I think that that is very important.