Looking forward to hearing more from Vince Cable tomorrow about the new 'Business Bank' that he and the Chancellor have been talking about recently. It will need to be on a big scale if its going to shake up the lending market, which is the ambition. Inevitably the Gov't is going to have to put in a £billion or so, which will have to produce an extra £10billion on so of new lending to business if its going to make any significant difference.
Also intererested in how this new 'Business Bank' is going to work. The Business Secretary tells us that more detail will be available tomorrow. Lets hope its enough detail to be confident it will make a difference. In my part of the UK, banks are keen to lend to secure farming businesses, and wind farms which are backed up by massive subsidies form Gov't. And that's about it. All the money ploughed in by the Bank of England through the printing presses has gone into de-leveraging (covering the toxic undeclared debts!). Still, tomorrow could well be a significant announcement.
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