Sir Richard Branson recently spoke out, about the state of the British economy. He said "To get that growth, we need to get behind the small and medium-sized businesses, that are the engines of any healthy economy... They [SMBs] need investment and finance, and that comes from the big banks. The politicians talk of encouraging lending; we need action to match that rhetoric."
It seems to be all talk and no action. It was the big banks that caused the economic turmoil in the first place, and now it's the big banks that are unwilling to do what is required, to allow the economy to recover. Businesses need investment money, to create opportunities and encourage growth. As well, banks cannot grow themselves, if they don't make investments; for their own future. Regrettably though, while the world's banks wait, so does economic recovery.
Investments are all about the future. Invest now, to benefit later.With that being said, it's time for banks do what they do best, and loosen the investment purse-strings to allow free enterprise to do what it does naturally. And, that is ... create opportunities for more jobs and encourage consumer spending.
"We need to encourage more entrepreneurship from the next generation - and focus on giving them the basic business and money-management skills as part of the schools curriculum."- Sir Richard Branson
Sounds like good business sense, from one who knows business better than most. Perhaps if the big banks fail to listen to Sir Richard Branson's sound advice, there could be a shift from public lending institutions, to more accommodating private lenders. Perhaps if the banks had more competition, they would be more willing to increase their lending practices, especially in this time of need.