Banking Reform

William Bain Excerpts

Thursday 14th June 2012 Commons Chamber

[Mr Hoban]

I think it is very clear that the emerging debate about a banking union flows from the problems we are seeing in the eurozone. It is important that the banking union helps resolve some of the problems in the eurozone, but it is a consequence of having a single currency, not a consequence of having a single market. It is important for the eurozone to move ahead in dealing with its problems and strengthening the banking regime within it. It is also important for the future of the City to ensure that there are proper safeguards over the functioning of the single market.

[Mr William Bain (Glasgow North East) (Lab)]

With a double-dip recession made in Downing street, bank lending having fallen for five consecutive quarters and businesses facing a shortfall of £190 billion in finance over the next decade, why are there no further proposals in the White Paper to diversify the range of banking institutions to make sure that finance gets into the real economy?

[Mr Hoban]

I do not know whether the hon. Gentleman has yet read the White Paper. If he had, he would have seen a section on competition that deals with encouraging diversity, making it easier for new entrants to come into the market and promoting switching. When the hon. Gentleman has read the White Paper, he might like to come back to me.