The government has published its agreement with the banks. Ignore all it says about lending commitments. The only relevant clause is this:
Each bank’s lending expectations, capacity and willingness, as set out above, will be subject to its normal commercial objectives, credit standards and processes and regulatory obligations, as well as the availability of the required funding.
And that means they can do what they like and nothing has changed.
That's not a deal. That's a whitewash.
Doesn't it show that Osborne has never done a real deal in his life?
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So true this government is built on a whitewash, ‘Big Society’ cover up for cuts, ‘Last Labour government’ cover up for shrinking the state, and ‘Bank Levy’ cover up for let off for the banks with the corporation tax cut and the dropping of the bonus tax. ‘Where all in this together’ cover up we fill in the gaps.
There is an article by Angela Knight in this month’s Accountancy to the effect that the banks do not see a problem. Their view is that demand for funding does not exist and if there is an issue it is solely down to businesses not being able to provide the required information to access the funds that are available.
So in other words, the commitments made are irrelevant and the banks will carry on as before.
So you say the banks should just lend to anyone willy nilly regardless of the ability of the borrower to repay the loan, just to meet a political “target” for lending? Isn’t lending to uncreditworthy people what got us into the mess in the first place?
@Neil McKie
No of course not
But equally it’s always been hard to get credit for small business and no one can deny it