The Business Secretary said yesterday that quantitative easing alone would not kick-start the economy and attacked the banks for failing to support businesses desperate for loans.
His remarks came as Labour set out proposals for banks to sell off hundreds of high street branches, which would then be used to create "challenger" banks and increase competition.
Mr Cable stressed the Coalition was reforming the sector with legislation being introduced early next year that would ring-fence retail operations from so-called "casino" banking.
He said this that while this would break the monopoly of the major players it would not be enough to tackle the anti-business culture in banking.
"We are under, this Government, creating a more competitive bank system," declared the Secretary of State for Business.
"The real problem at the moment is that the banks, because of their existing culture, which is frankly anti-business – [their] obsession with short-term trading profits, not focusing on the long term – are actually throttling the recovery of British industry."
He added: "Last week, I was appalled as I was going around firms in the north of England, [meeting] super companies which have big export potential, and they just cannot get a loan to finance their exports and expansion. This is the issue that we have got to focus on."
Meanwhile, as Labour announced its new plans, Shadow Chancellor Ed Balls accused the Government of "foot-dragging" on reform.
The Government responded by insisting it was already creating new banks in the form of Virgin Money and the Co-operative Bank. "Labour is simply demanding what we've already done," said a source.
Paul Tucker, Deputy Governor of the Bank of England, will appear before the Treasury Committee today and Marcus Agius, Barclays Chairman, will appear tomorrow over the Libor-rigging scandal.
Mr Balls insisted the criminal inquiry by the Serious Fraud Office announced last week should lead to prosecutions. "The reason why people are so angry is they think when people avoid their taxes or cheat on benefits they get sentences in jail. But when bankers do massive multi-million or billion-pound frauds, there aren't criminal prosecutions," said Mr Balls.
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