Quid Pro Quo: Redressing the privileges of the banking industry

Prieg L, Greenham T and Ryan-Collins J – The New Economics Foundation 2011

According to this report banks enjoy an implicit subsidy from taxpayers; because they will be bailed out, if necessary, markets view lending to them as low risk. It estimates that in 2010 the ‘big five’ UK banks enjoyed a combined ‘too big to fail’ (TBTF) subsidy of £46 billion. Subsquently banks have come to occupy a unique and privileged economic position in relation to their customers and to other industries, enabling them to make excessive profits.

Please download the Quid Pro Quo: Redressing the privileges of the banking industry document as a pdf (4.1MB).