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'Business bank' to boost lending

A new "business bank" is being set up to boost lending to small and medium-sized firms, the Business Secretary Vince Cable has announced to delegates at the Lib Dem party conference.

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Cable's business bank 'risky and incoherent'

Vince Cable's plans for a business bank in the UK have been labelled "risky and incoherent" by the Institute of Economic Affairs. Mark Littlewood, Director General said:

The government should not be taking the risks from business lending that banks are not willing to bear themselves.

Cable's government-backed business bank is designed to deal with the problems of small business credit that have arisen since the financial crisis. However, the bank is unlikely to be up and running until seven years after the early events of the crash and so it is unlikely to have any impact on the short-term problems faced by businesses as a result of those events.

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