Sir Mervyn King encourages further reforms to bank regulation
As banks tighten purse strings, venture capitalists seek opportunities to help SMEs grow and expand
London, England – September 25, 2012 – During a live interview, Bank of England Governor, Sir Mervyn King, expressed his belief that further reforms to bank regulation were needed to increase future economic stability. Policy-makers are considering loosening regulation, but King stated that he prefers the stricter rules imposed last year on the banking industry.
Small and medium enterprises, also known as SMEs, will be especially affected by the imposed regulation. Stricter regulation means less money to invest, and numerous SMEs will find bank doors shut tight when they seek funding for growth and expansion. Despite this, there is still money available from alternative sources.
Although there have been improvements in the economy, recovery is still projected to be slow. Funding from banks for small and medium enterprises will continue to be scarce. As the financial situation improves, more funding from banks may become available, but it will still be limited based upon strict regulation of the banking industry.