But why does FT’s John Kay not find it wrong when regulators restrict the competition for access to bank credit?

Sir, John Kay writes: “to restrict competition is to damage both the process of innovation and the public interest” “What the other John Kay taught Uber about innovation”, January 27.

Indeed but why does FT’s John Kay steadfastly refuse to apply the same criteria when regulators restrict the competition for access to bank credit?

Regulators tell banks: “You can leverage your equity, and the support we give you by for instance deposit insurance schemes, much more with the net risk adjusted margins paid by “The Safe”, than with the same margins paid by “The Risky”

And by that, regulators are de facto restricting the competition for bank credit for all those who ex ante are perceived as risky, like the SMEs and entrepreneurs.

And that also damages the process of innovation and the public interest.

@PerKurowski ©