LONDON, Sept 9 (Reuters) - Lloyds Banking Group LLOY.L named former Goldman Sachs banker James Garvey head of capital markets on Wednesday, one of the UK bank's highest profile appointments since it was rescued with state cash.

Garvey will head the capital markets and advisory business. He retired from Goldman Sachs GS.N as a partner earlier this year after spending 10 years at the U.S. investment bank.

A Lloyds spokeswoman declined to disclose details of his pay and said the bank always looked to reward people “in an appropriate and prudent fashion”. Efinancialnews said he will be paid over 1 million pounds ($1.7 million) a year.

The UK government owns 43 percent of Lloyds after pumping almost 15 billion pounds into it and HBOS, the lender Lloyds took over earlier this year.

Garvey will report to Andrew Geczy, Lloyds’ managing director of wholesale markets.

Garvey’s experience of dealing with institutions and corporates across the capital markets “fits perfectly with our vision to support our wholesale client franchise with an enhanced capital markets platform”, Geczy said.

Garvey also worked for Citigroup C.N, UBS UBSN.VX and West LB in a 22 year career, Lloyds said. (Reporting by Steve Slater; editing by Elaine Hardcastle)