Member

That is what my Amendment 11 tackles. It takes a British approach, inspired by success in the United States. The FCA would assess lending to individuals, households and small businesses against deposit taking in a community to determine whether the lending is proportionate. Where a bank does not wish to lend in reasonable proportion, it can fund a CDFI rather than change its business model. UK CDFIs have very low default rates and create impressive numbers of businesses and jobs, so the mainstream banks are not losers by this mechanism, just as they have not been in the United States. Thanks to the growth guarantee scheme, the banks are required to hold capital against only 30% of their contribution.