Commons Sense

House of Commons · Ministers' Questions

Business Finance: Banks

Wednesday 16 September 2020 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 1 Not answered 0

Key points

  • Government discussions with the Welsh Government covered the comparative effectiveness of the Development Bank of Wales and high street banks in providing finance to businesses during the covid-19 outbreak.
  • High street banks have provided over 1.1 billion in loans under the Government's bounce back loan scheme and 300 million under the coronavirus business interruption loan scheme to firms in Wales.
  • The Development Bank of Wales has contributed 100 million to Welsh businesses, while high street banks have lent around 1.4 billion using Government schemes.

Topics (select to filter)

Questions & Answers

Q1 Geraint Davies Lab
Wales Business & Trade
Context

The Welsh Affairs Committee found that the Development Bank of Wales was more effective than high street banks in delivering coronavirus loans to businesses. High street banks were criticised for being unresponsive, delayed, and risk-averse.

Question

What discussions has the government had with the Welsh Government on the comparative effectiveness of the (a) Development Bank of Wales and (b) high street banks in providing finance to business in Wales during the covid-19 outbreak?

Answer from David Davies

High street banks have been at the forefront of lending to firms impacted by covid-19. They have provided support through over £1.1 billion-worth of loans under the Government's bounce back loan scheme and £300 million of loans under the Government's coronavirus business interruption loan scheme. The Development Bank of Wales has contributed an additional £100 million.

Answered
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Q2 Geraint Davies Lab
Wales Business & Trade
Context

The Welsh Affairs Committee found that high street banks were unresponsive, delayed, and risk-averse during the COVID-19 outbreak. The committee recommended more funding for the Development Bank of Wales.

Question

Will the Secretary of State and the Minister impress on the Chancellor the need to provide more funding for the Development Bank of Wales and to import this excellent idea into England to help all British business?

Answer from David Davies

A high street bank is naturally more risk-averse than a UK Treasury-backed bank. However, around £1.4 billion has been lent to Welsh businesses via high street banks using Government schemes, while the Development Bank of Wales has contributed £100 million.

Partly answered

Not addressed: Specific request for additional funding and expansion into England was not addressed

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