A Bank for Business, but what will it look like ?
Vince Cable is announcing a new business bank which could support up to £10bn of business lending. This has been widely trailed in the press, though it's still not clear what this "Business Bank" will look like.
One suggestion is that it could be some kind of SME-debt securitisation body, akin to what Fannie Mae and Freddie Mac do for home mortgages in the US.
A little over a year ago Adam Posen argued the case for such a body arguing that - in buying these bundles of loans from banks - it could free up banks' balance sheets and stimulate lending. In addition the Breedon Review recommended investigating whether the UK would benefit from such a move, especially as it would stimulate a market for SME bonds.
It is likely that a securitisation body would have a positive impact on Access to Finance for UK SMEs. However the fundamental problem in the finance sector is the lack of competition: 85% of the SME lending market is controlled by four banks.
Another suggestion is that the government could fund some sort of investment bank - in a similar model to the German KFW. This could then pump funding into smaller "challenger banks".
This would be positive in that it would support the objective of getting more players into the market, but there are some real questions about how it would work.
How would this be additional to the existing Funding for Lending scheme?
How would they discriminate between "challenger" banks and main banks? (and how would this comply with state aid rules? How quickly would this increase the supply of lending to SMEs?
Either way we need to see a map of how this will work as soon as possible
Older/Newer
« Taclking youth unemployment - the mismatch of skills | Beware of creating ire among the plebs »
19 Comments
Leave a comment
Business authors
David Bailey - Prof David Bailey, Coventry University Business School
My postings |
My feed
Stuart Pemble - Construction Lawyer, Mills & Reeve
My postings |
My feed
John Clancy - Birmingham City Councillor and director of mediafuturesalert.com and justliteracy.com
My postings |
My feed
John Samuels - Professor of Business Finance, Birmingham Business School
My postings |
My feed
Chris Tomlinson - Chris Tomlinson is the founder of social media and online PR agency Friend (frienddigital.com)
My postings |
My feed
Andrew Whitehead - Senior partner at law firm SGH Martineau, leading the firm's Energy & Climate Change practice.
My postings |
My feed
Keith Gabriel - A Birmingham-based PR Account Manager
My postings |
My feed
Beverley Nielsen - Lecturer, Design Management, at the Birmingham Institute of Art & Design, BCU
My postings |
My feed
Mike Loftus - Director of News from the Future Ltd. Writing on the trials of setting up your own business
My postings | My feed
Richard Halstead - Midlands region director for EEF, the manufacturers organisation.
My postings | My feed
Karl Edge - partner at KPMG in Birmingham, specialising in automotive, manufacturing and house building sectors.
My postings | My feed
Peter Owen - Managing director for construction firm Willmott Dixon Midlands.
My postings | My feed
Dr Steven McCabe - director of research degrees for Birmingham City Business School.
My postings | My feed
Francis Greene - Professor of Small Business and Entrepreneurship, at the University of Birmingham.
My postings
Alan Gilmour - Director at Cogent Elliott, experienced in marketing, brand development and customer relationship management.
My postings
Paul Noon - Paul Noon, OBE, West Midlands International Trade Director at UK Trade & Investment.
My postings
Latest Birmingham Post News blog
Birmingham Post staff and guest bloggers from the midlands give you their opinions on local and national news.
Latest Birmingham Post Lifestyle blog
Birmingham Post staff and guest bloggers from the midlands give you the lowdown on what's happening in your region and some musings on culture in the UK and beyond.
Latest Birmingham Post Science blog
Birmingham Post staff and guest bloggers from Birmingham and the midlands inform and entertain on all science matters.
Latest Birmingham Post Sport blog
Birmingham Post staff and guest bloggers from Birmingham and the midlands inform and entertain on all sporting matters.
Does your site have a contact page? I'm having problems locating it but, I'd
like to send you an e-mail. I've got some ideas for your blog you might be interested in hearing. Either way, great site and I look forward to seeing it grow over time.
Attractive section of content. I just stumbled upon your
weblog and in accession capital to assert that I acquire actually enjoyed
account your blog posts. Anyway I'll be subscribing to your augment and even I achievement you access consistently fast.
I every time used to read paragraph in news papers but now as I am a user of web therefore from
now I am using net for articles or reviews, thanks to web.
Hi, just wanted to tell you, I liked this article. It was funny.
Keep on posting!
Vielles salopes gratuites porno obese
Heya i am for the first time here. I found this board and I find
It really useful & it helped me out a lot. I hope to give
something back and aid others like you helped me.
It's nearly impossible to find educated people about this topic, however, you sound like you know what you're talking about!
Thanks
I like it when folks get together and share opinions. Great website, continue the good work!
Hi! Someone in my Facebook group shared this site with us so I came to check it out.
I'm definitely loving the information. I'm bookmarking and will be tweeting this to my followers!
Wonderful blog and brilliant style and design.
Magnificent beat ! I wish to apprentice while you amend
your website, how can i subscribe for a blog site?
The account helped me a acceptable deal. I had been tiny bit
acquainted of this your broadcast provided bright clear idea
Hi there, I log on to your blog daily. Your writing style is awesome, keep it up!
Why users still make use of to read news papers when in
this technological globe all is presented on net?
Thanks for finally writing about >A Bank for Business,
but what will it look like ? - Birmingham Post - Business Blog
It's an amazing piece of writing in favor of all the internet users; they will get advantage from it I am sure.
We are a group of volunteers and starting
a new scheme in our community. Your website provided us with valuable info to work on.
You have done an impressive job and our entire community will be grateful
to you.
Wonderful, what a webpage it is! This blog provides valuable facts to
us, keep it up.
Hello Dear, are you in fact visiting this site daily, if so afterward you will without doubt obtain good knowledge.
I seriously love your blog.. Pleasant colors & theme.
Did you make this amazing site yourself? Please reply back as I'm wanting to create my own personal website and want to learn where you got this from or what the theme is named. Thanks!
What's up to all, how is the whole thing, I think every one is getting more from this website, and your views are nice designed for new people.