I hear mixed reports about the banks. Some people and businesses report great difficulty in getting a bank loan for a good purpose, high fees and charges, even difficulty in keeping what banking facility they do enjoy. Others tell me things are more normal, and there is money to borrow for those who have a good reason.
I do not detect any better service or especially different credit policy at the banks where the public is a large an forced shareholder, than I do in the remaining private sector banks. It seems to be business as usual, as attenuated by the Credit Crunch.
There is a lack of decisive action at the semi nationalised banks, to cut their losses, cut their costs, sell off their overseas and investment banking arms, and concentrate what resource they do have on the UK domestic and commercial banking activities. Yet that is why I thought the government stepped in, to try to ensure a better flow of credit to families and companies.
I would like to hear from you about how your banks are behaving. Is there credit available? Have your banks been cutting staff and cutting costs? What has been happening to fees and charges?
In current conditions banks ought to be able to make good money on new business they undertake. The gap between their borrowing costs and their lending rates is high. They still have a lot of past business to sort out, with more write offs possible, so they are going to need to improve their service, write better business and reduce their costs if taxpayers arte to be soared big new losses.