Osborne calls on banks to lend more to companies

August 1, 2010

BBC News reports on the chancellor calling for banks to lend more to business.

The chancellor has warned the UK’s banks that they need to start increasing their lending to businesses.

George Osborne said the government “would not tolerate banks piling the pressure” onto small firms, and that it was their “obligation” to lift lending.

Read more.

By getting banks to lend more, George is hoping that business investment will rise, resulting in an increase in jobs and incomes. This should also have a positive impact on tax revenues and reduce benefit payments.

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A game of monopoly that changed the rules of British banking

September 21, 2008

A game of monopoly that changed the rules of British banking

Heather Connon in the Guardian writes

Lloyds TSB snatched the Halifax from the jaws of the credit crunch – but with thousands of jobs on the line and HBOS’s capital problems far from solved, the giant new bank will need skilful handling to ensure that it is a success.

The merger was quickly passed by the government.

…the Office of Fair Trading, which blocked Lloyds TSB’s attempt to acquire the much smaller Abbey National seven years ago, has been forced by the government to wave this deal through.

Generally if a bank merger this size was going to take place, questions would be asked.

Photo source.