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21/11/2008
Darling To Force Small Business Lending
Banks could be forced to lend to ailing enterprises, struggling from the effects of the economic downturn, according to reports. Chancellor Alistair Darling is said to be considering robust new legislation that would put pressure on lenders to provide loans to small businesses.
According to the Daily Mail and Daily Telegraph, Mr Darling is looking at a raft of measures to boost small firms, which could include placing a cap on loan interest rates.
Banks have been accused of "sitting on their hands" by some Labour MPs, but this assumption could be changed when the Chancellor unveils his pre-Budget report on Monday, aimed at stimulating the domestic economy.
Schemes to loosen lending policies and boost the underwriting of loans are expected in the report.
Mr Darling has suggested if banks fail to comply with these recommendations, he will legislate to make them do so.
Head of the Treasury Select Committee, John McFall, said banks who refuse to lend to small firms should face public pressure, and be threatened with complete nationalisation.
"Despite having been pulled back from the brink, the banks appear reluctant to launch their sizeable recapitalisation lifeboat and start lending again to households and businesses," Mr McFall said.
A storm has erupted following the banks' apparent stagnant reaction to the £37bn government-backed bailout scheme, by failing to pass on interest rate cuts and make credit available to small businesses.
If the banks fail to comply, there could be "nuclear option" of full-scale nationalisation, Mr McFall added.
(PR/JM)
According to the Daily Mail and Daily Telegraph, Mr Darling is looking at a raft of measures to boost small firms, which could include placing a cap on loan interest rates.
Banks have been accused of "sitting on their hands" by some Labour MPs, but this assumption could be changed when the Chancellor unveils his pre-Budget report on Monday, aimed at stimulating the domestic economy.
Schemes to loosen lending policies and boost the underwriting of loans are expected in the report.
Mr Darling has suggested if banks fail to comply with these recommendations, he will legislate to make them do so.
Head of the Treasury Select Committee, John McFall, said banks who refuse to lend to small firms should face public pressure, and be threatened with complete nationalisation.
"Despite having been pulled back from the brink, the banks appear reluctant to launch their sizeable recapitalisation lifeboat and start lending again to households and businesses," Mr McFall said.
A storm has erupted following the banks' apparent stagnant reaction to the £37bn government-backed bailout scheme, by failing to pass on interest rate cuts and make credit available to small businesses.
If the banks fail to comply, there could be "nuclear option" of full-scale nationalisation, Mr McFall added.
(PR/JM)
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27 July 2009
Darling Tackles Banks On Loan Costs
Lending to small businesses is growing - that's what the UK's leading banks told the Chancellor today. Alastair Darling met with the nation's most high profile institutions this afternoon, and pressed for more details on the financial charges small firms face.
Darling Tackles Banks On Loan Costs
Lending to small businesses is growing - that's what the UK's leading banks told the Chancellor today. Alastair Darling met with the nation's most high profile institutions this afternoon, and pressed for more details on the financial charges small firms face.
09 February 2011
Banks' Lending Statements Welcomed
The Government today welcomed the commitment by the UK's biggest banks on lending expectations and capacity, the size of the 2010 bonus pool, pay disclosure and support for regional growth and the Big Society.
Banks' Lending Statements Welcomed
The Government today welcomed the commitment by the UK's biggest banks on lending expectations and capacity, the size of the 2010 bonus pool, pay disclosure and support for regional growth and the Big Society.
20 November 2008
Chancellor's Aid For Small Businesses
A raft of new measures to support small firms, across the UK, to secure loans will be unveiled by the Chancellor next week, the Financial Times has reported. Mr Darling will aim to help ailing companies gain finance and insurance against the backdrop of a wider economic slowdown, the FT said.
Chancellor's Aid For Small Businesses
A raft of new measures to support small firms, across the UK, to secure loans will be unveiled by the Chancellor next week, the Financial Times has reported. Mr Darling will aim to help ailing companies gain finance and insurance against the backdrop of a wider economic slowdown, the FT said.
24 May 2011
Bring Back Traditional Bank Managers, Says Group
The Forum of Private Business is responding to the announcement that the UK's major banks are over £2 billion short of hitting their small business lending target. The group are repeating its calls for better competition, more investment in regional branches and the restoration of lending powers to local bank managers.
Bring Back Traditional Bank Managers, Says Group
The Forum of Private Business is responding to the announcement that the UK's major banks are over £2 billion short of hitting their small business lending target. The group are repeating its calls for better competition, more investment in regional branches and the restoration of lending powers to local bank managers.
20 May 2011
Small Firms To Miss Out On Banks’ £2.5 Billion Fund
The Forum of Private business is warning that the vast majority of small businesses seeking affordable finance will miss out on a new £2.5 billion equity fund launched yesterday by the UK's largest banks and the British Bankers' Association (BBA).
Small Firms To Miss Out On Banks’ £2.5 Billion Fund
The Forum of Private business is warning that the vast majority of small businesses seeking affordable finance will miss out on a new £2.5 billion equity fund launched yesterday by the UK's largest banks and the British Bankers' Association (BBA).
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