ED Miliband yesterday set out plans to introduce a network of regional banks that would supply local businesses with capital.
The Labour leader told the British Chambers of Commerce annual conference that radical action was needed because trust in the traditional system had failed.
“We do not just need a single investment serving the country. We need a regional banking system serving each and every region of the country,” he said.
“Regional banks with a mission to serve that region and that region alone, not banks that are likely to say no but banks that know your region and your business; not banks that you mistrust, but banks you can come to trust.”
The banks would follow Germany’s Sparkassen model and would only serve their local area.