Bank Lending and Credit (Businesses)

Part of Chancellor of the Exchequer – in the House of Commons at 2:30 pm on 6th December 2011.

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Photo of Andrew Tyrie Andrew Tyrie Chair, Treasury Sub-Committee, Chair, Treasury Committee, Chair, Treasury Committee 2:30 pm, 6th December 2011

The major banks argue that they cannot be expected to strengthen their balance sheets and increase net lending at the same time. Does the Chancellor agree with the Governor of the Bank of England that that could be achieved if banks were prepared to cut their bonuses and dividends? In particular, is it not time that shareholders stepped up to the plate and ensured that banks behaved responsibly on the matter?