Bank bailout has created a damaging monopoly on lending. say small firms
Aug 09
Government support for the domestic banking industry in the wake of the credit crunch is stifling competition and creating a monopoly on lending that leaves small businesses with nowhere to go if their own bank refuses credit, it has been alleged.
The Federation of Small Businesses said the situation had become so bad that it wanted ministers to urgently consider backing alternative sources of finance to allow samaller firms to survive the recession, Regional development agencies, local councils and the Post Office should be allowed to mimic banks and offer loans, the trade body said.