views

Darling pushes for clarity

Steve Dinneen
Follow Steve
ALISTAIR Darling is considering tough new rules forcing companies to disclose sensitive financial information.

The move is designed to promote new sources of funding as banks cut lending. The Treasury hopes encouraging greater transparency would make it easier for large and upper-mid sized companies to sell bonds and take out loans.

The Treasury may even create a new database for the Financial Services Authority to upload the data.

There is pressure throughout Europe for companies to be freer with information that would both be useful to, and encourage new investors.

Rules in the US are tighter and the Treasury is exploring if this is a reason its bond market has developed further than in the UK.

The move would be controversial, with many firms unwilling to give up sensitive information, particularly relating to covenants on loans.