Applying reporting restrictions to the media during an economic crisis would be a 'wholly unjustifiable intrusion into the freedom of the press', industry body the Newspaper Society (NS) has said.

Implementing reporting rules would be 'unworkable in the internet age', the society added in its submission to the Treasury Committee's inquiry into the role of the media in the UK's banking crisis and whether financial journalists should act under reporting restrictions during banking crises.

Introducing such proposals would be 'without precedent' and would also infringe freedom of the individual, such Article 10 of the Human Rights Act, according to the group.

Existing reporting restrictions, such as those relating to national security, are not appropriate in this instance, the society said. The media was even criticised by some for not publishing more and quicker criticism of the banking system that led to the crisis, it added.

"The accurate reporting of all manner of 'bad news' can produce a public reaction, both generally and individually (…) The media have not just the right but also the responsibility at times to act as the public's 'watchdog' and to sound the alarm," the submission stated.

Last year the UK media was criticised by some commentators for fuelling the economic crisis, with BBC business editor Robert Peston singled out with allegations that he had caused share prices to fall.

However, the NS said there has been no evidence produced to suggest 'malpractice or misreporting' of the crisis by the media.

"[T]he only criticism – and which seems to be the genesis of the suggestion of imposing restrictions – seems to be that the media has been all too accurate in its reportage," said the society.

The NS' full submission can be read at this link.

The committee's inquiry into the banking crisis will begin on January 13 with the session on the media's role planned for mid-February.