As Liam Halligan said recently in the Daily Telegraph, the UK has avoided the economic meltdown like Spain, Greece, and other European countries. He continues,
“The Government can’t live without growth, yet nor can it seem to contemplate the bold actions that would snap the UK out of its torpor. We find ourselves, then, in a complex predicament – not easy to sum up in a headline.”
The way that Liam Halligan suggests that UK economy will return to growth is when our big banks are restructured. It’s been Liam’s argument for years that because the banks are hiding huge losses they are, “failing to provide the fresh working capital needed for viable companies to expand and to finance new and productive projects”.
I agree with Liam about the state of our big banks. Unlike him I do see change taking place in the UK banking sector. It’s taken time, but the personnel changes at the top of many banks, the many investigations, and changes to their operating cultures are likely to be positive for business lending. Not fast enough you can argue. UK banks are changing, unlike European counterparts Dexia, Anglo-Irish, who are still being bailed out by the taxpayer.
I’m heartened, as I believe Liam Halligan should be, that the Chancellor, George Osborne, is considering breaking up RBS. I’m sure for many of us, reform of UK banking remains an important topic, one that’s taking too long to fix.