EEF says banking industry is unfit for purpose

Delegates at the recent Finance for Future conference, organised by the manufacturers organisation EEF, agreed that the current banking situation provides an ideal opportunity for change, in particular with strong support for a re-established industrial Bank tasked with investing in the future.

The EEF has called for a šBank for Industry' that would bring together the various government mechanisms for supporting innovation into a single financial vehicle, with the specific intention of supporting innovation. This move would unite - the new regional venture capital funding, the Enterprise Capital Funds, the Innovation Investment Fund, the Grant for Research and Development and the regionally delivered proof of concept funding - into a single entity.

Speaking at the conference, EEF director of policy Steve Radley, said: "There is a growing consensus that the current banking system is unfit for purpose as far as innovative, high value manufacturing businesses are concerned. The current situation provides the ideal opportunity to take stock and reform the financial architecture of the banking system.

"This must include a national Bank for industry to meet the needs of small and medium size companies that the current system is failing to address. Without this the growth of innovative small and medium size companies, as well as the economy overall, will be impaired."

What do you think of having a šBank for Industry'? Email the editor at: knowhoweditor@eriks.co.uk to have your say