A creditable recovery

Author: Andrew McNally

Politicians of all shades seem united on one thing at least: the need for banks to keep lending. Since the financial crisis, getting credit flowing has been the main goal of financial policy.

And policy makers have pursued it with energy and ingenuity. The Bank of England’s Funding for Lending programme, which gives banks incentives to extend new loans; the European Central Bank’s long-term refinancing operations; the British government’s Help To Buy scheme, which caps lenders’ losses on certain types of mortgage – the list goes on. All are products of the same belief, that credit is the elixir of recovery. It is a premise that no mainstream politician seems to doubt. However, would they be quite so united, left and right, if they could see how the proliferation of credit has contributed to sharpening inequality? The link is real and damaging. Even if credit creation did boost employment for a while, this approach will deny most of society the returns to risk capital – the rewards of economic progress. We seem to be rushing into another credit-driven boom, with huge rewards for a few, and social and economic exclusion of the many. It is as economically destructive as it is socially poisonous.

Read full article in The FT

Risk Warning

The value of investments and the income from them can go down as well as up and investors may not get back the amount originally invested and may lose all of their investment. The value of investments in the investment funds contained on this website may be affected by the price of underlying investments. Exchange rate changes may cause the value of overseas investments to rise or fall.

Nothing contained on this website constitutes, and nothing on this website should be construed as, investment advice or a recommendation to buy, sell, hold or otherwise transact in any investment. It is strongly recommended that you seek professional investment advice before making any investment decision.

You should consider whether an investment fits your investment objectives, particular needs and financial situation before making any investment decision. You should also inform yourself and seek advice as to (a) the possible tax consequences, (b) the legal requirements and (c) any foreign exchange restrictions or exchange control requirements which you might encounter under the laws of the countries of your citizenship, residence or domicile and which might be relevant to the subscription, holding, transfer or disposal of interests in any investment fund.

To the extent that this website contains any information regarding the past performance and/or forecast of investment funds, such information is not a reliable indicator of future performance of these investment funds and should not be relied upon as a basis for an investment decision

Equitile Investments Ltd (“Equitile”) offers no guarantee against loss or that investment objectives will be achieved. Please read the Key Investor Information Document, Prospectus and any other offer documents carefully and consult with your own legal, accounting, tax and other advisors in order to independently assess the merits of an investment.

Equitile Investments Ltd is authorised and regulated by the Financial Conduct Authority in the United Kingdom and is a company registered in England, number: 09459099. Registered Office: 2nd Floor, Regis House, 45 King William Street, London EC4R 9AN.

By clicking “Accept” you confirm that you have read and understood the above information.



Here at Equitile we take your privacy seriously and will only use your personal information to send you monthly fund reports, news and marketing updates regarding Equitile and its funds. If you would like to receive monthly fund reports, news and marketing updates by email please fill out the form below:

Should you no longer wish to hear from us you can let us know at any time and asked to be removed from our database. You can find the details of how we process, store and protect your personal data at http://equitile.com/uploads/equitile-privacy-policy-may-2018.pdf


Thank you for subscribing.