Conservative Manifesto 2010 Change the Economy Create a Safer Banking System That Serves The Needs of The Economy
We will reform the regulation and structure of the banking system to ensure lower levels of leverage, less dependence on unstable wholesale funding, and greater availability of credit for SMEs.
In the run up to the financial crisis, British banks became amongst the most indebted and most leveraged in the world – with disastrous consequences for us all. this credit boom turned into a bust, with a significant fall in credit available to firms. Lack of access to credit remains a major problem, especially for Smes. We need to change the way we regulate our banks to stop a crisis on this scale ever happening again.
Reform financial services
The financial services sector is one of our most globally successful industries, and we want the City to be the leading location for global finance. But the financial sector must not put the stability of the whole economy at risk.
We will put in place a levy on banks. We are prepared to act unilaterally if necessary, but there is emerging international agreement on this approach and the US and german governments have both announced similar plans.
We need fundamental reform of our failed regulatory system, avoiding badlydesigned regulations that will damage our competitiveness and ensuring that the financial sector can supply the affordable credit that businesses need.
We will abolish gordon brown’s failed tripartite system of regulation and put the bank of england in charge of prudential supervision. We will restore the bank’s historic role in monitoring the overall growth of credit and debt in the economy. in addition, we will:
• pursue international agreement to prevent retail banks from engaging in activities, such as large-scale proprietary trading, that put the stability of the system at risk;
• empower the bank of england to crack down on risky bonus arrangements;
• increase competition in the banking industry, starting with a study of competition in the sector to inform our strategy for selling the government’s stakes in the banks; and,
• as the government comes to sell off its holdings in the banks, offer a ‘people’s bank bonus’, so that everybody in the country has the chance to buy a stake in the state-owned banks. We will create more diverse sources of affordable credit for small businesses, building on our proposals for a national Loan guarantee Scheme.
japan is a world leader in the development of green technology. it invests in R&D at almost double the UK’s rate, and Japanese companies hold roughly 30 per cent of green technology patents filed in the US. As a result, Japan is far ahead of the UK in the trillion pound market for green technology. this leadership is not just good for the economy; it’s also good for the environment. For example, thanks to the widespread use of green technologies, japan has the lowest carbon intensity of any major economy.
Copyright ©, The Conservative Party, 30 Millbank, London, SW1P 4DP. All rights reserved. Any rights not expressly granted herein are reserved.