You may remember earlier this week I mentioned the main reason why businesses are finding it so hard to get those Coronavirus Business Interruption Loans was that the Treasury insisted banks take 20% of the risk of loss. Well today the Governor of the Bank of England...
told journalists he thought that if the Treasury were to take 100% of the risk, up from the 80%, that would significantly increase the flow of lending, it would unclog the operational problems. Quite unusual for a Bank Governor to in effect publicly lobby the government...
So will @RishiSunak take Andrew Bailey's advice. I am told he is mulling over what to do this weekend.
For the avoidance of doubt, the governor (and I) was talking about loans of less than £25k to smaller companies
