SME lending - Project Merlin a failure shocka.
Discussion
So lets get this right...
Government step in and kind of demand that Banks lend money to businesses as they have set them a quota.
Banks don't lend enough and are publicly blamed in media...
Hmmmm..... Where have I seen this idea go badly wrong before?
Why don't the government either keep this s
t between them and the banks or not do it... And certainly don't let the media involved.
Government step in and kind of demand that Banks lend money to businesses as they have set them a quota.
Banks don't lend enough and are publicly blamed in media...
Hmmmm..... Where have I seen this idea go badly wrong before?
Why don't the government either keep this s
t between them and the banks or not do it... And certainly don't let the media involved.Much as the banks deserve a kicking - I don't think they do on this score. First of all the "failure" is only by 1% - so hardly a disaster.
Secondly, the banks have been given two mutually impossible tasks, to improve the strength of their balance sheets by lending less but to help the economy by lending more.
Secondly, the banks have been given two mutually impossible tasks, to improve the strength of their balance sheets by lending less but to help the economy by lending more.
essayer said:
Sky News said:
The five banks that signed up to the Project Merlin deal with the Government lent £74.9bn to small and medium sized firms in 2011 - £1.1bn short of their £76bn target.
Hardly a disaster, IMO.Sticks. said:
Is the figure quoted lent or offered?
Loaned. Difficult to quantify what was asked for but not granted, given the banks one-to-many relationships with SME's, but this from the article:Andrew Cave from the Federation of Small Businesses said:
"The Merlin targets have failed,"
"Talking to our members, 30% of them say they missed a growth opportunity because they weren't able to access finance at the right times, so there is still a problem."
"Talking to our members, 30% of them say they missed a growth opportunity because they weren't able to access finance at the right times, so there is still a problem."
Eric Mc said:
Much as the banks deserve a kicking - I don't think they do on this score. First of all the "failure" is only by 1% - so hardly a disaster.
Secondly, the banks have been given two mutually impossible tasks, to improve the strength of their balance sheets by lending less but to help the economy by lending more.
I think Eric Mc is spot on here.Secondly, the banks have been given two mutually impossible tasks, to improve the strength of their balance sheets by lending less but to help the economy by lending more.
Politicians need to begin joined up thinking. The NHS nonsense is another example of the complete naivety of our politicians. They simply do not think through the unintended consequences of their policies at all.
They gave the Banks mutually exclusive objectives. Hence the result.
Banks have already demonstrated in the most graphic terms their complete inability to deal with difficulties in Finance. If the Banks were the smooth, organised, resourceful, thoughtful, reactive leaders that they pretend to be they might just have seen the crunch coming in 2008.
Not a single Bank did.
Nor did the Regulators.
Nor did the Bank of England.
Nor did the Treasury.
Banks are fixated upon gambling on trades in the investment, derivative and commodities markets for the bonuses and personal fortunes of the Senior Staff and Directors of the Banks, who have come to believe that this is their entitlement.
The Corporate Governance of Banks has not changed in any material concern.
The game of Musical Chairs may have moved around Directorships but the Ethos of massive personal reward and the culture of personal greed remains endemic in the Banking system.
There will be no improvement until the system is changed. The Government has no intention of changing the system. Therefore, there will be no improvement.
The irony is that most of the public would prefer Governments to do nothing.
The problem even spreads to the Civil Service. In the Civil Service, you could be doing the best job ever. But if it doesn't result in an announcement about some new policy, it's considered trivial and you get no credit.
The problem even spreads to the Civil Service. In the Civil Service, you could be doing the best job ever. But if it doesn't result in an announcement about some new policy, it's considered trivial and you get no credit.
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