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Credit where it's due:How to revive bank lending to British Small and Medium Sized Entreprises

Hutton, Will and Peasnell, Ken (2011) Credit where it's due:How to revive bank lending to British Small and Medium Sized Entreprises. [Report]

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    Abstract

    This report suggests that The Treasury could significantly boost lending to SME’s by adopting a innovative approach to credit easing. The new scheme would mean banks could invest less of their own credit in SMEs, and with measures in place to disincentivise risky lending, these investments would be profitable for banks. The proposal would see Special Purpose Vehicles (SPVs) set up for each participating bank, and these loans would be controlled by tight measures. The Treasury would have the power to reign in the process if it felt SMEs were being over-funded – averting the risk of bankruptcy. In addition, loans from banks to SMEs would carry fewer risks by being subject to normal commercial rules.

    Item Type: Report
    Uncontrolled Keywords: SMEs ; Bank lending ; Credit easing
    Subjects:
    Departments: Lancaster University Management School > Accounting & Finance
    ID Code: 51626
    Deposited By: ep_importer_pure
    Deposited On: 28 Nov 2011 11:32
    Refereed?: No
    Published?: Published
    Last Modified: 27 Jul 2012 00:40
    Identification Number:
    URI: http://eprints.lancs.ac.uk/id/eprint/51626

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