'We need local banks' says Vince Cable (From Daily Echo)
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Business Secretary in Winchester for European Conference on Banking and the Economy
10:30am Thursday 7th March 2013 in News
Business Secretary Vince Cable
Local banks are needed to help Britain out of recession, Business Secretary Vince Cable told a Hampshire conference last night.
He said the big four banks – Barclays, Lloyds, HSBC and RBS, are too dominant and were currently avoiding lending money to smaller firms because they were under pressure to increase capital.
But he said there were positives such as new banks like Metro Bank and Handelsbanken, more online lending to entrepreneurs and government plans to fund new banks to fill a gap in the market.
Speaking at the second European Conference on Banking and the Economy (ECOBATE) 2013, at Winchester Guildhall, Dr Cable said: “The consequences for the UK have been catastrophic and we are still hanging in there.
“We suffered the economic equivalent of a heart attack and heart attacks have long term consequences.
“We have a massive problem due to collapsed banks and an absence of local banks. There’s a vacuum to fill and new ideas and initiatives is what we are looking for.”
Earlier in the day Prof Richard Werner, director of the centre for banking, finance and sustainable development at the University of Southampton, said a local bank was what Hampshire needed to galvanise the economy.
Comments(8)
Terry_Nutkins
says...
12:36pm Thu 7 Mar 13
It would be good to divert profits from the parasitic high street banks and their insidious banking principles but, sadly, they are too powerful and have money tied up in too many areas (energy, etc.) It would be nice if the politicians actually sanctioned policy to benefit the people and the economy rather than being yes men, afraid of the large multi-national corporations.
southy
says...
12:42pm Thu 7 Mar 13
Subject48
says...
12:48pm Thu 7 Mar 13
Yet we have rewarded them by bailing them out and ensuring they still receive their bonuses?
Yep, something has definitely gone wrong....
Torchie1
says...
2:55pm Thu 7 Mar 13
southy wrote:So the accounts offered on the Post Office website don't exist then? I wonder why they are explaining the account functions that can be made 'in branch' via the Internet or by phone where you can pay in, withdraw, earn interest, set up standing Orders etc etc etc. In fact it could almost be like a bank which allows you to post parcels and collect your benefits from, or are you miffed that the Bank of Ireland is behind it and you can't shut it down by going on strike?
What we need is a state owned bank, seeing that the post office is no longer allowed to run a bank.
skin2000
says...
5:48pm Thu 7 Mar 13
g employment and facilities for local people....Deglobaliz
ation....well it would be start.
Terry_Nutkins
says...
6:39pm Thu 7 Mar 13
skin2000 wrote:Hell no!! Southamton would combust if we entrusted anything else to our inept council. It would be the beginning of the end. ;o)
I think that it would be a idea to make Councils into banks....Then money could be lent to local people to invest in local businesses...creatin
g employment and facilities for local people....Deglobaliz
ation....well it would be start.
skin2000
says...
7:51pm Thu 7 Mar 13
Terry_Nutkins wrote:Only an idea
skin2000 wrote:Hell no!! Southamton would combust if we entrusted anything else to our inept council. It would be the beginning of the end. ;o)
I think that it would be a idea to make Councils into banks....Then money could be lent to local people to invest in local businesses...creatin
g employment and facilities for local people....Deglobaliz
ation....well it would be start.
bazzeroz says...
11:27am Thu 7 Mar 13