New business bank to boost lending
Business Secretary Vince Cable announces first steps in a government funded bank to help small and medium sized businesses.
24 Sep 2012
The new bank will aim to attract private sector funding so that when fully operational, it could support up to 拢10 billion of new and additional business lending.
The 바카라 사이트 will build a single institution that will address long-standing, structural gaps in the supply of finance,
It will bring together in one place 바카라 사이트 finance support for small and mid-sized businesses. It will also control the 바카라 사이트바카라 사이트檚 interests in a new wholesale funding mechanism which will be developed to unlock institutional investment to benefit small businesses.
Vince Cable said:
바카라 사이트淔or decades British industry has lacked the sort of diverse, long-term finance that is quite normal elsewhere. We need a British business bank with a clean balance sheet and a mandate to expand lending rapidly and we are now going to get it.
바카라 사이트淎longside the private sector, the bank will get the market lending to manufacturers, exporters and growth companies that so desperately need support. It will be a lasting monument to our determination to reshape finance so it can finally serve industry the way it should. Its success will not be the scale of its own direct interventions but how far it shakes up the market in business finance and helps to ease constraints for high-growth firms.
바카라 사이트淗aving a functioning, diverse supply of finance is an integral part of the 바카라 사이트바카라 사이트檚 industrial strategy. It is all about making the right decisions now to secure our long-term industrial success.바카라 사이트�
The bank will operate at arms-length from 바카라 사이트. It will be professionally run and commercially focused. It will facilitate the provision of loans, including long-term capital, to UK firms through banks and other financial institutions. By harnessing the power of capital markets, it has the potential to transform business finance in the UK.
The new institution will operate through the wholesale markets, it will not have any retail presence and will not displace or subsidise banks. Its role is to encourage the development of private sector solutions and enable the market to work properly, not compete with it.
More detail on the design of the bank and the types of interventions it will support will be provided in the autumn.