Small and medium-sized businesses are struggling for funding, or so Business Secretary Vince Cable would have you believe.
For a long time now, this has been his key refrain. He may or may not be right, a lot of the discussion is anecdotal and the banks would argue that there is little demand among firms for borrowing.
However, even if Vince Cable is right, it could also be said that risky loans made by banks were a major contributor to the economic crisis – especially in the US – and should the Government really be artificially encouraging more bank lending that the banks themselves do not regard as profitable?
See also Does Britain Need a Financial Regulator? by Terry Arthur and Philip Booth