§ Mr. Skeetasked the Chancellor of the Exchequer whether there are any countries in the European Economic Community where a system of two-tier minimum lending rates operates, one for regulating private transactions and one for commercial and industrial operations; and whether the system could be suitably adapted for use in the United Kingdom.
§ Mr. LawsonDifferent institutional arrangements make precise comparisons between countries difficult. There are organisations in France and Italy that extend credit on favourable terms but there is no general system of two-tier rates in the banking system of any EEC country. Broadly speaking, the lending rates of banks in EEC countries, as in the450W United Kingdom, depend on the length and purpose of the credit and the risks involved.