Restoration of trust seen as key to recovery

An enduring recovery depends on trust being restored to the financial system, Andy Haldane, the Bank of England’s head of financial stability, said on Monday as he called for smaller and more diverse banks, and a return to mutuality.

He attributed the slump in the economy and in credit in the financial system to a loss of trust between banks and households, among banks and between banks and investors over the past two years.