Sept. 24 - Business Secretary Vince Cable's £1bln business bank relies on quality decisions not the quanity of capital behind it, says Reuters Breakingviews.
So quality and quantity that's the view on Vince cable's one billion pound business bank Reuters breaking news assistant and it's a remote code joins me to give us size you want. Your point seems to be you need sound credit judgment and that's what's lacking. In the interim. Well it's not just don't demonstrated. Out of they would concise yet but it's lack -- But I think you know the headline has been called hip -- she's been locker room firm for a few weeks now anyway. They'll be a billion pounds found. To feed into into school -- As a citizen who are strapped for cash. Now that's and not headlines -- think about it rates by any means the most important consideration is not the quantity of cash. Is the quality of the decisions. About the -- of way it's going to does. -- not all eight if this -- can demonstrate that it has good banking credentials and can make good sound lending decisions. I think that -- Vince Cable -- This bank could find lots and lots of extra capital that may -- cost the government. And I think it's sort of technical from. Well products from the private sector to I think the other the other thing about the judgment species which is really important is that of schools and they're all quite. Stringent Europe him on site I need provisions. And did I state run bank giving loans to companies must beat apple let know subsidies. It's just -- you know what has already been written about this this morning I didn't and some noticeable and notable comments from from -- Wellman bloggers. And thrust is that -- it's gonna take at least a few months put this into into place so always businesses struggling to get loans right now. I got -- miss out. OK that's fair enough for the the other interesting thing that that broke past that the BBC says an attempt it's an attempt to give securitize station. I could name products and don't forget now. Absolutely and then there you harking back to 2000 sudden that's that's what we built into into trouble look but. But of course has felt secure causation. The schools all the problems back in 2007. It was the black aids it was a misuse and secure Gaza but did nothing wrong would not that as long as it's that we used well. And I think that this is this is exactly the point if the judgments are good at the heart of that bank. Then it'll pick good thing but it and -- we -- -- -- -- as well I mean -- the way this is playing on the news channels Lomas is like. It's gonna get us out recession is gonna pump primus has been another form of stimulus. I think Iraq and actually that you -- and Robert makes his point I think one as well. This is actually an effort to try and re structural pump prime -- change in the UK banking market. It underlined this is a poll that I think Vince Cable might be having which is that. There isn't enough competition there isn't enough of the right kind of banking talents within the except I think he's probably got a point and if he can pump prime that competition. Through -- that's a good thing but again and again and again it comes down to the banking decisions in it you need that kept -- outlook you'd hoped what -- -- kind of a bit it made you want but you want dot com the person to make those and we very typical parking decisions. And if this I can do that and then spy. Other banks and doing the same thing that a lot because. Okay Robert many thanks and Robert Cole two CL US I bring you show that comes on properties -- -- 230 GMT. Every day. You also got told banks and and -- tough decisions other tough decisions banks have to make -- -- -- Dixon at 1145 his op Ed piece today I'm axles hopefully this is joins us.