More pertinently, a full-blown state lending bank – which the Business Secretary seems to be edging towards – would be illegal under EU law.
That is a point I hadn\’t considered.
You can have a state owned bank, that\’s obvious. But in order not to be providing illegal state aid lending decisions must be made on a fully commercial basis.
The definition of fully commercial basis pretty much being \”would the loan be made by a non-state bank?\”
At which point there\’s not all that much point in having a state owned bank, is there?