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?