Seeking end to 'Boom & Bust' banking

SDLP North Antrim candidate Declan O'Loan says banks should not be able to turn the flow of credit to homeowners and businesses "on and off to suit their narrow business needs".
By The Newsroom
Published 19th Apr 2010, 16:00 BST
Updated 26th Apr 2010, 11:36 BST

Mr O’Loan said: “A banking licence is a contract between a financial institution and society and after the events of the last two years its terms need to be renegotiated. Small businesses, homeowners and society in general must not be made pick up the bill for the banks’ speculative misadventures.

“Not so long ago banks were offering 100% mortgages to pay inflated house prices with blithe disregard for ability to repay.

Hide Ad
Hide Ad

“Now couples with sound finances can’t get even a modest mortgage. Small businesses which need loan finance to smooth out income and expenditure bumps suddenly find their overdraft being cut off,” said the SDLP MLA.

“Regulators are rightly demanding that the banks rebuild their capital reserves, but ways must be found of doing this without choking off the essential flow of credit to society.

“We need to put an end to boom-and-bust banking with a new regulatory regime which can step in to prevent both excessive speculation and excessive credit squeezes,” he said.

Related topics:SDLP