My government is upset at the banks. The banks are not lending "enough" to "small and medium sized" businesses and the government believes this to be a major cause of failure of growth.
I am no economist but I imagine the good old capitalist system expects businesses to make judgements in line with their own objectives, and that they would know better than anyone else what these might be. So here it is: banks wont lend to folks who might not be in a position to pay interest or repay the loan. That is what my government wants them to do. I seem to remember a few short years ago we got into a mess precisely because banks lent money to people who could not pay it back. My government wants to repeat that disaster? Apparently so!
