Bruton warns banks to start lending

THE bosses of nationalised banks will be fired if they keep refusing to lend to small businesses, Enterprise Minister Richard Bruton warned last night.

Denying that the Government had back-tracked by not laying out plans for its much-vaunted idea of a strategic investment bank as an early priority, Mr Bruton said ministers would deal “toughly” with bank chiefs at the two core financial institutions set-up around Bank of Ireland and AIB if they continue to starve firms of financial help.

He insisted bank bosses’ “rose-tinted” perspective over how they were performing would not wash with the new administration, which wants some €30 billion lent to viable businesses to help boost the recovery.