Business Finance Banks 2020-09-16
2020-09-16
TAGS
Response quality
Questions & Answers
Q1
Direct Answer
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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.
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?
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.
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Assessment & feedback
Response accuracy
Q2
Partial Answer
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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.
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?
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.
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Assessment & feedback
Specific request for additional funding and expansion into England was not addressed
Response accuracy