British Prime Minister Gordon Brown on Wednesday set out his plan to reform the way the world's banks are governed, saying governments need to work together to stem the reckless and inappropriate lending that has destroyed confidence in financial markets.

He says the new global governance must deliver:

- a global early warning system so that future risks to global economic and financial stability are identified and mitigating actions taken early;

- globally accepted standards of supervision and regulation applied equally and consistently in all countries;

- effective cross-border supervision of global firms;

- mechanisms for cooperation and concerted action in a crisis.

He also calls for banks to be transparent about the risks they face and about the reality of their balance sheets. Management should be responsible for the risks they undertake, the plan says.

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