The British government has announced a policy aimed at improving the behaviour of some of the world's biggest banks.

Chancellor George Osborne says it will bring responsibility and restraint to those blamed for the global financial crisis.

He says it is now time to stop bank bashing.

"The anger will remain and I understand that, and we must never make the same mistakes again, but Britain needs to move from retribution to recovery," he said.

Under the deal, the country's four biggest banks have agreed to lend more than $300 billion to businesses and cap bonuses at the banks that were bailed out.

But the Opposition says the bonus cuts do not go far enough.