Credit Easing and P2P Finance

Written by Simon Deane-Johns Thursday, 06 October 2011 11:46
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The governments proposal to intervene directly in the corporate and small business funding markets shows how grave it is that lending to UK businesses is shrinking.

But it seems crazy for the taxpayer to prop up zombie banks - subsidising tax-free savings rates that allow banks an average margin of 11% - and then to use more public money to shunt aside nascent private competitors. Surely, the result will be a never-ending spiral of financial dependency on the public purse. 

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Simon is the author of the forthcoming ''Fixing a broken banking system'' as part of the forthcoming sequence of books in which he takes on the character of ''The Pragmatist''.
Last modified on Thursday, 06 October 2011 11:54

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