Thursday, Jun 24, 2010
What is, "useful credit to households"?
BBC: Peston: A tax on Lloyds, Royal Bank of Scotland and Barclays
"the government is signalling that it wants banks to reduce their dependence on such wholesale funding. Which may seem like a good thing.
Except that our biggest banks have for some years provided many tens of billions of pounds of loans - especially mortgages - on the back of such wholesale finance. So if they were to reduce their dependence on wholesale finance, there is a reasonable probability that they would cut back on the useful credit they provide to households and businesses"
Posted by ontheotherhand @ 10:32 AM (622 views) Add Comment
3 Comments
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1. inbreda said...
peston is an idiot
2. mark wadsworth said...
Silly OHOH! That credit is desperately required to keep house prices high, upon which our economy depends and to enslave the next generation in debt.
3. tenyearstogetmymoneyback said...
If they offered a decent rate on their savings accounts then the money would come pouring in and they would have plenty to lend
(at a sensible market rate).
For about the last five years I have had Halifax regular savings accounts and paid in the maximum.
This year it wasn't worth bothering with so the money has gone elsewhere.