Recently I talked to many Birmingham manufacturers needing loans that used to be quite standard working capital, but are now refused. All complained that bank managers had no local knowledge, and were over-ridden by head office diktats wanting high short-term returns, with no risk.
Hmm, over-centralisation, yes, it can be something of a problem.
Project Merlin promised to make banks lend more, especially to small business – but they are still under-lending. With no sanctions, banks are only nudged by a “desire” to see lending rise.
Gosh, that’s a good solution. Central targets for lending. Sure gonna beat over-centralisation that way, aren’t we?
5 responses so far ↓
1 johnny bonk // Aug 23, 2011 at 12:50 pm
why are the banks not lending?
It is how they make their money.
Have they got better places to lend to?
Are they being forced (by law or their perceived own interests) to recoup rather than lend money at the moment?
2 Ian B // Aug 23, 2011 at 1:01 pm
Lending isn’t an aggregate. How do we know that the particular people Polly has talked to are a good risk?
3 dearieme // Aug 23, 2011 at 2:23 pm
” Recently I talked to many Birmingham manufacturers”: why do I find a sceptical eyebrow rising at this claim?
4 David Gillies // Aug 24, 2011 at 12:26 am
Gentry don’t talk to trade. Whole story’s a stack of cobblers from top to bottom.
5 mitch // Aug 24, 2011 at 4:55 am
We just purchased new plant ( a cnc lathe) the company did its own finance at very good rates, unfortunately they are Korean.
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