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John Thurso MPCaithness, Sutherland & Easter Ross |
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Thurso quizzes Bank of England officials over how to get banks lending to small businesses
June 29, 2011 11:28 AM
Local MP John Thurso took the opportunity of today's Treasury Select Committee to highlight his grave concerns that banks are still failing to meet their lending targets and starving small businesses of the credit they need.
John said: 'The banks seem to be struggling at best, and failing at worst, to get anywhere near delivering on Merlin (the voluntary agreement that the Government negotiated with the banks which sets targets for lending).'
Officials with the Bank of England largely agreed with his assessment and in response to the MP's questions Adam Posen, a member of the influential Monetary Policy Committee, urged the Treasury not to be "penny wise but pound foolish" when considering selling its stake in the banks and to consider promoting more competition in the banking system. John Thurso suggested "the best public good may be using this absolutely unique possibility through state ownership to re-structure the banking system to the advantage of the consumer."
Commenting after the meeting John Thurso said:
"While London is an international financial hub, the domestic British credit market has long been underdeveloped and if Government plans to re-balance the economy away from the financial sector are to succeed, making sure British businesses of all sized have access to the credit they need will be vital. I still get far too many cases in Caithness, Sutherland and Easter Ross of viable small business and start ups that simply can't get the support they need from the banks."
