Banks: Small and Medium-sized Enterprises

Lord Haskel Excerpts

Wednesday 12th March 2014 Lords Chamber

[Lord Popat]

My Lords, the noble Lord makes a very important point. One way to solve the problem we have with SME lending is to bring in more competition. We are spinning out Williams and Glyn’s from the Royal Bank of Scotland and TSB from Lloyds Bank. The regulators have relaxed the regulations to issue new banking licences, and I am pleased to say that we have 21 applications in place. We have launched the British Business Bank. More competition will solve some of the problems, and of course more lending to our businesses will help the economy.

[Lord Haskel (Lab)]

My Lords, along with equity funding, the hedge funds and equity funds are doing the work of the banks to some extent. Is the Minister satisfied that they are being properly regulated in doing this work?

[Lord Popat]

My Lords, equity funding is within the government department and is currently being consolidated with the British Business Bank, which will obviously be regulated in its equity funding. So will the FCA.