21.01.13
A network of local “banks” should be created across Wales to invest in SMEs, according to the Welsh Conservatives. The party’s Invest Wales policy is launched today and aims to reverse low access to finance for SMEs in Wales
The policy includes proposals to create six banks operating under the Invest Wales brand, which would be based in existing high street banks – replacing the Finance Wales business funding arm of the Welsh Government.
Plaid Cymru recently announced that its economic commission would investigate proposals for a Bank of Wales, along similar lines to Sparkasse and Landesbanken which operate on a regional basis to support local industries.
Iestyn Davies, head of external affairs at the FSB in Wales told Wales Online that all Welsh political parties had recognised there was a problem in the way banks engaged with business.
“Our own surveys and research shows that the pressing need for support in terms of everyday finance as well as funding to grow is now hitting home and constraining economic growth. Initiatives from the Welsh Government to set substantial money aside for investment in SMEs now has to be matched with a commitment to deliver that resource on the ground to local businesses.
“The recent support for the concept of a localised solution is particularly welcome. Our recent policy conferences and research has pointed to the way a regionalised model, already used extensively across the US and Europe, could help in Wales. It is also important that the new localised banks for business has a recognisable brand that can instil confidence once again through developing mutually supportive relationships between banks and business.
“A real breakthrough in this area could also help those individuals as well as businesses that are currently financially excluded and in danger of falling into the hands of loan sharks and unscrupulous practices outside the banking system.
“It would offer an opportunity to innovate through peer-to-peer lending, crowdsourcing and the exciting initiatives already being taken by Credit Unions and Community Finance Initiatives.
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