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It said that it was "essential" to meet demand for lending from businesses, homeowners and consumers.
He added: "Nonetheless, economic conditions remain challenging, and demand for lending is likely to vary through the year.
If they wanted to lend — and if there was sufficient demand for lending — they have more than enough capacity to do so without taking another dime in liabilities.
The bond issue will be a crucial test of the price investors' demand for lending to highly leveraged companies from the pre-2007 boomut boom.
Some economists expect the banks will claim there is no demand for lending – not that they are unwilling to offer credit.
The banks will protest that demand for lending is weak (and Bob Diamond got his retaliation in early when he said small businesses have £16bn on deposit at Barclays).
Similar(52)
And while the banks are understandably blaming this year's economic slowdown for a lack of demand for new lending, businesses I talk to are fearful that the government is letting the banks off the hook.
The return of Paragon was welcomed by mortgage broker Ray Boulger of John Charcol who said there was pent up demand for such lending from professional landlords, particularly since Lloyds Banking Group pulled back from the market this month.
Mr. Ochi, who described Mr. Ishihara as a "frequent troublemaker," said the plan would place too big a burden on institutions that are already struggling with piles of soured loans, a reduced demand for new lending and a more vigorously competitive environment.
So why has institutional demand for marketplace lending grown?
In January, the Bank of England's Credit Conditions Survey showed demand for unsecured lending increased in the final three months of last year and is expected to grow during the first quarter of 2017.
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