Lord Myners, the City minister, says today that the government has no desire to nationalise Britain’s banks through either the front or the back door, arguing that they are 'best managed and owned commercially'.

Against a growing clamour for the government to nationalise fully both Royal Bank of Scotland and the newly merged Lloyds Banking Group, Lord Myners claims that the government is doing all it can to keep the banks in the private sector.

Writing in the Financial Times, he states: 'Banks best fulfil their role when they allocate capital on the basis of a sensible assessment of risk and returns.'

Lord Myners also rejects suggestions that the government’s offer to insure the banks’ toxic assets against heavy losses will lead to creeping nationalisation.

Financial Times