§ 9. Mr. Kenneth Lewisasked the Chancellor of the Exchequer if, in any future instructions he gives to the Bank of England on restrictions of credit by the banks he will take into account the proposed development of the credit card system.
§ Mr. MacDermotThe banks are aware that credit restraint is intended to apply to all forms of bank lending to the private sector.
§ Mr. LewisWould not the hon. and learned Gentleman agree that this appears to go beyond normal overdrafts, and is an extension of personal credit? Does he see it as possibly inflationary?
§ Mr. MacDermotIt need not be. It is a new form of credit, and it may be 210 a useful one. What is important is that bank credit should keep within those limits which are necessary in the national interest, and the banks have co-operated very fully with the policy which was laid down by my right hon. Friend earlier last year.