Banks 'endangering UK recovery'

9 March 2012

Banks 'endangering UK recovery'

Britain's major banks are endangering the country's economic recovery through their unreasonable policies with regard to business lending.

That is the opinion of business secretary Vince Cable, who has accused financiers of failing to do their bit in boosting the nation in the wake of the recession as they are offering second-rate levels of support to smaller companies eager to grow.

Speaking during the Lord Mayor of London's trade and industry banquet at Mansion House in the capital, Mr Cable - who is also MP for Twickenham - noted that thousands of these firms are trapped in a "valley of death" as they are unable to access the money they need to develop.

"Britain's recovery is being imperilled by the parlous state of the very institutions that cause the crisis in the first place," he added.

The senior government official went on to insist there is currently a "yawning mismatch" between the needs of "productive businesses" and the willingness of banks to help them.

Posted by Asim Shah

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