§ Mr. Sillarsasked the Chancellor of the Exchequer what machinery exists between Government and the banks to ensure that the banks' profits are used for industrial investment.
§ Mr. Denzil DaviesIn common with other companies, banks either put their profits—after taxation—to reserve—where they form part of the basis for future operations—or distribute them to shareholders.
The funds which are available for lending to industry are the counterpart of deposits with the banks and of free capital. Through guidance issued by the Bank of England, the banks are asked to give priority in their lending to finance required for both working capital and fixed investment by manufacturing industry, and for the expansion of exports and the saving of imports.