Chris Leslie MP, Labour's Shadow Financial Secretary to the Treasury, responding to the Financial Policy Committee's comments on bank capital today, said:
“It’s vital that the new Financial Policy Committee focuses closely on the safety and stability of the banking system but they should remember they also have a duty to support economic growth. Getting the balance right will be vital in the coming months, particularly if our economy continues to flatline and bank lending continues to fall, and so this must be kept under close review.
“Banks can and should be looking at ways to respond to the FPC’s demands for increased capital that do not involve further shrinking lending to businesses. For instance, as the FPC says, they should look at other things instead like cutting bonuses.
“And it is now even more important that the Government finally takes action to boost lending to businesses. Labour has called for a proper British Investment Bank to be established and reforms to the Funding for Lending scheme, but on both counts Ministers have totally failed to deliver.”