The Governor sees the most important contribution of the Wilson Committee as scotching the impression of a financing gap and questions whether any worthwhile investment would follow from effectively force feeding industry with funds from a National Investment Bank funded by the institutions. The major problem in this country is that the rate of return on investment is too low.
The Governor makes the following among many other points:
- The banks have stepped into the breach left by the debenture market.
- Present conditions make it especially desirable for banks to be well and regularly informed about the business of their customers.
- The responsibility of the institutions must remain to their shareholders and policy-makers, or pension contributors and pensioners: but the time has passed when the institutions can avoid closer involvement with the companies whose shares they hold.
- Discussion of a government-backed loan guarantee scheme/or small companies is to be welcomed, though the need is uncertain.
- It is hard to believe that the provision of finance by a new institution such as that advocated by the TUC would result in more productive investment or a better allocation of in vestment as between different industries or different projects.