Mervyn King's new SME bank 'bribe'

Adrian Holliday

UK banks have already had billions of taxpayer cash thrown at them. Now Bank of England governor Mervyn King wants to reward banks - "fiscal incentives" - that lend more cash to small businesses. In other words, the £75bn of new cash pumped into the economy won't be enough. But do the banks really need to be incentivized even more when bonuses, again, are on the up?