I don't think government lending targets for banks would work because we have seen how banks needed the bailouts from the government, even though they were the ones to blame for it. The government is already in a huge deficit and lending money to banks would put our currency and economy at a greater risk.
The government creating lending targets for banks is just the rich monitoring their friends. It is a notional regulation. It really does not create an impact unless someone without banking interests is able to create the lending targets. Since everyone uses banks, and those people smart enough to regulate banks typically work for the banks, no one will impose change that is effective at it.
No, I do not think that this would work. I think that the banks today know what they are doing, and know how their business needs to be ran, and any help that the government could give towards lending targets would not do any thing to help them out significantly.
Government lending targets for banks would not work. If a business or person does not have a viable way to pay back a loan, then the banks lose. This is what happened with the sub-prime home lending crisis. We need to learn from our mistakes and stop lending in hopes to make a really quick buck.
I do not believe government lending targets for banks would work. I believe banks have shown that they will make bad decisions if they so chose to and they've proved that they can hold an economy at proverbial gun point. I do not believe government lending targets would improve this problem.