We have a different banking system!

At the same time,
it has performed poorly in one of its core functions, that of providing finance
for investment in British businesses.94 Loans to UK businesses account for only
5 per cent of total UK bank assets – around a third of the proportion across
the Eurozone, with UK banks lending a much higher proportion for land and
property

The UK has an Anglo Saxon style corporate financing system. We use equity and markets much more than do the continentals. This is not an error nor failure, it’s just different.

2 thoughts on “We have a different banking system!”

  1. It depends what you mean by UK banks. If it includes the UK branches and subsidiaries of international banks in the City of London who have a much higher proportion of Inter-Lakes assets than banks in mainland Europe, then this statistic is hardly surprising.

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