Banks Inhibit Economic Growth

Direct Inhibition

A large inhibiting factor in the economy is the over-charging by the banks for all financial services to small businesses, as well as a lack of lending or lending at honest rates.
All banks have instigated policy to summarily refuse requests from entire sectors of the economy, they have no personnel reviewing these business cases.

Companies which are large enough access money markets directly by issuing corporate bonds, they by-pass the banks, and so avoid the high cost of borrowing from them.
Big Business is therefore growing at the maximum rate it can.

The only way to increase the growth rate of the economy is by stimulating growth in smaller businesses, which will in turn help larger businesses grow faster.

The banks are actively stymying economic growth.

Indirect Inhibition

Derivatives and Reserve Double Whammy

Speculation by banks on derivatives requires them to hold capital reserves to cover that risk.
Reducing this gambling, and investing in businesses instead, would result in greater economic growth, and less requirement for capital reserve, further freeing capital for lending or reducing costs to SMEs, resulting in even more growth.

Moving away from speculation is a win win.

Adjust Dynamic Tensions: Forcing Banks To Lend

A regulatory and tax framework must incentivise the banks enough that they invest more money in businesses rather than gambling, and at a cost which will not penalise good businesses.
Moving money away from derivatives;

Taxes must also incentivise the bankers to seek out good businesses to invest in.

Having a solid, well funded small business sector leads to both greater financial stability and healthier bank balance sheets by the growth this creates in the economy.

These two measures would have the desired effects, If not they can be adjusted upward.

After this is done, the banks can be asked which other institutions and professionals it would be useful to tax in this way.

Dynamic Tensions

The National Interest & Banks Interest

The priority for the national interest is affordable lending to SMEs, but banks are actually having a negative impact on the national interest. Banks are rebuilding their balance sheets by levying more on SMEs for all financial services.

The National Interest & Bankers Greed

The priority for the national interest is affordable lending to SMEs, as you can see everything the banks and bankers are doing is focused on their own profits, and worse than that they are deliberately targeting exorbitant fees on the part of the economy we need to grow. Small businesses are paying for the £850billion bailout.

In order to make large profits from derivatives, the banks say they must pay large bonuses, so all bankers want to gamble on derivatives.