"Threatening an “enormous kick-back” from politicians who would go on the “war path”, he said banks would be subjected to more financial penalties unless they increase levels of lending.
His comments coincided with fresh data from the Bank of England that showed lending to businesses fell for a fifth consecutive month in July, with small companies at the heart of the struggle to access credit.
Mr Cable suggested that the Government could take tougher steps – including an increase in the banking levy imposed on the larger banks in the budget, which is due to raise £8bn over the next five years.
Asked at a fringe meeting at the Liberal Democrat conference what he could do to boost lending rates, Mr Cable said: “We spelt out that there were what we called sticks and carrots.
One of the sticks is in relation to tax measures. It remains an option, particularly if the banks decide to spray out lots of money on bonuses and dividends at a time when small businesses are being starved, then the case for taking action is a compelling one.”
The warning comes as it emerged that lending to Britain's businesses fell for a fifth consecutive month in July, with small companies at the heart of the struggle to access credit.
A report by the Bank of England showed a £2.5bn fall in net lending to businesses, compared with a £3.2bn fall in June. It brought the annual rate of decline in business lending down to 5.7pc in July from 7.9pc in June.
"Contacts of the Bank's network of agents noted that while credit conditions were easing for larger businesses, they remained tight for smaller firms," the Bank said in its monthly Trends in Lending report.
The Bank said that most major UK lenders reported subdued demand for credit. However, Howard Archer, chief UK economist at IHS Global Insight, said that even so, tight credit conditions were posing a significant obstacle for businesses.
"The Report reveals ongoing very tight credit conditions, thereby maintaining concerns that this poses a serious handicap to economic activity," he said.
Mr Archer said that a lack of credit for smaller businesses, faltering money supply growth, and signs of a slowing recovery would increase pressure on the Bank to loosen monetary policy further by extending its £200bn quantitative easing programme.
The Bank also said that mortgage approvals for house purchases by the UK's major lenders fell to a 16-month low of 45,000 in August from 47,000 in July, a bigger-than-expected fall.
The Council of Mortgage Lenders also pointed to a slowing housing market after gross mortgage lending fell to £11.4bn in August, from £13.3bn in July – the lowest level for the month of August in a decade.
Separate figures from the Bank showed the broad money supply fell by 0.2pc month-on-month in August, reducing the annual growth rate to 1.8pc – the lowest level since the series began in 1983."
Source: Vince Cable: banks heading for 'train crash' if they pay bonuses without lending - Telegraph
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Oh FFS Vince, get a ******* clue - in this crisis of debt you are trying to make banks lend more, ffs - if you think that's very responsible, profitable activity then introduce some competition - get BoE lend directly.
His comments coincided with fresh data from the Bank of England that showed lending to businesses fell for a fifth consecutive month in July, with small companies at the heart of the struggle to access credit.
Mr Cable suggested that the Government could take tougher steps – including an increase in the banking levy imposed on the larger banks in the budget, which is due to raise £8bn over the next five years.
Asked at a fringe meeting at the Liberal Democrat conference what he could do to boost lending rates, Mr Cable said: “We spelt out that there were what we called sticks and carrots.
One of the sticks is in relation to tax measures. It remains an option, particularly if the banks decide to spray out lots of money on bonuses and dividends at a time when small businesses are being starved, then the case for taking action is a compelling one.”
The warning comes as it emerged that lending to Britain's businesses fell for a fifth consecutive month in July, with small companies at the heart of the struggle to access credit.
A report by the Bank of England showed a £2.5bn fall in net lending to businesses, compared with a £3.2bn fall in June. It brought the annual rate of decline in business lending down to 5.7pc in July from 7.9pc in June.
"Contacts of the Bank's network of agents noted that while credit conditions were easing for larger businesses, they remained tight for smaller firms," the Bank said in its monthly Trends in Lending report.
The Bank said that most major UK lenders reported subdued demand for credit. However, Howard Archer, chief UK economist at IHS Global Insight, said that even so, tight credit conditions were posing a significant obstacle for businesses.
"The Report reveals ongoing very tight credit conditions, thereby maintaining concerns that this poses a serious handicap to economic activity," he said.
Mr Archer said that a lack of credit for smaller businesses, faltering money supply growth, and signs of a slowing recovery would increase pressure on the Bank to loosen monetary policy further by extending its £200bn quantitative easing programme.
The Bank also said that mortgage approvals for house purchases by the UK's major lenders fell to a 16-month low of 45,000 in August from 47,000 in July, a bigger-than-expected fall.
The Council of Mortgage Lenders also pointed to a slowing housing market after gross mortgage lending fell to £11.4bn in August, from £13.3bn in July – the lowest level for the month of August in a decade.
Separate figures from the Bank showed the broad money supply fell by 0.2pc month-on-month in August, reducing the annual growth rate to 1.8pc – the lowest level since the series began in 1983."
Source: Vince Cable: banks heading for 'train crash' if they pay bonuses without lending - Telegraph
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Oh FFS Vince, get a ******* clue - in this crisis of debt you are trying to make banks lend more, ffs - if you think that's very responsible, profitable activity then introduce some competition - get BoE lend directly.
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