The Prime Minister has set out his vision for the future relationship between financial institutions, the public and the rest of the economy.

Gordon Brown was speaking to G20 Finance Ministers who met at St Andrews in Scotland this morning.

Mr Brown called on the G20 to investigate ways to provide a fairer balance of risks and rewards between taxpayers, citizens, shareholders and bank employees.

He said global financial markets must be brought into closer alignment with the “values held by the mainstream majority: hard work, responsibility, integrity and fairness”.

“It can not be acceptable that the benefits of success in this sector are reaped by the few but the costs of its failure are borne by all of us.

There must be a better economic and social contract between financial institutions and the public based on trust and a just distribution of risks and rewards.”

Read the entire speech

He said the G20 group have already agreed “far-reaching” reforms which provide proper accountability of global banks and financial institutions.

But the PM said more needed to be done to change the balance of risk. He proposed measures including insurance fees for systemic risk, resolutions funds, contingent capital arrangements and a global financial transactions levy.

Gordon Brown stressed that achieving “a better economic and social contract between financial institutions and the public” would depend on global support.

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