Time For The Banks To Get Credit Moving Again

We need to get credit flowing to business to get the economy moving again. This credit needs to flow to help business create new jobs. Sadly, at the moment, despite the fact that they have hoovered up public money over the past year or so, the banks are not passing credit on to the real economy. They need to get their act together, quickly.

I speak to so many businessmen who complain that the flow of
credit that is crucial to small and medium sized businesses has ground to a near halt. I speak to so many people who, quite rightly, complain that banks are more than happy to pass on interest rate cuts to savers but not to mortgage holders.

Banks are paying ultra bonuses to their bosses while squeezing lending to the real economy. Good, sound businesses are still being deprived of credit. It is about time that the big banks stepped up to the plate and played their role in getting credit flowing and getting the economy moving again. We need to put pressure on the banks to pass on interest rate cuts and to lend money to business. We also need to take up the idea of a £50 billion National Loan Guarantee Scheme, that has been outlined by Ken Clarke, to help employers of all sizes get credit.