4R Blog

RSS Feed

Cable: Break up banks to boost business lending

Date Added: 08/03/2012  

Business minister Vince Cable has argued state-owned bank RBS should be broken up into smaller lenders in order to improve access to lending for companies, such as those taking business debt advice to avoid a winding up order.

The Liberal Democrat MP sent a letter to deputy prime minister Nick Clegg and prime minister David Cameron advocating the changes last week, but former chief executive at RBS Sir George Mathewson claimed it would be a "regrettable" move.

"My suggestion is that we recognise that RBS will not return to the market in its current shape and use its time as a ward of state to carve out of it a British business bank," said Mr Cable, noting it would have a clean balance sheet and a mandate to expand lending rapidly to sound businesses.

Santander recently announced the appointed of new local business managers in a bid to improve the flow of lending to suitable companies.

Need advice on Winding up Orders? Call 0800 9020123

Posted by Michael Beam

Get the Help You Deserve

0800 90 20 123

Urgent Help Call 24/7

020 7183 2606

We'll Call You

Request a Callback