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27/07/2009
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.
Despite the British Bankers' Association (BBA) reported jump of £133m in business lending from May to June - totalling around £366m - Mr Darling said he is still "extremely concerned" by the charges imposed on lenders.
His claims that associated costs are too high were refuted by BBA chief executive Angela Knight.
Mr Darling, who held talks bank bosses at the Treasury, said despite a 0.5% record low in base interest rates, the cost of lending was still rising.
He called on the banks to help stimulate lending levels, insisting the Government did not inject money into the sector as a "charitable act".
Mr Darling also called on banks to stand-over their duty to the public.
However, Ms Knight defended the current rates set by lenders, suggesting wholesale prices in the money markets are much higher than the UK base rate.
She said the wholesale price of borrowing was roughly 1%.
"As far as the major banks are concerned they are lending, and increasing their lending," added Ms Knight.
She said firms should be able to demonstrate they have capacity to repay loans, and indicated that agreements are still assessed on a case-by-case basis.
"There will be difficult judgements at the edges and that's why it's important to keep close to the (bank) manager and get that business plan right."
Small Business Federation spokesman Stephen Alambritis lauded the Chancellor for bringing banks to account.
He said: "It is hugely important that Mr Darling keeps tabs on the banks to ensure they are lending money to firms, and at fair rates."
"Firms need to be able to reap the benefits of the historically low base rate."
(PR/BMcC)
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.
Despite the British Bankers' Association (BBA) reported jump of £133m in business lending from May to June - totalling around £366m - Mr Darling said he is still "extremely concerned" by the charges imposed on lenders.
His claims that associated costs are too high were refuted by BBA chief executive Angela Knight.
Mr Darling, who held talks bank bosses at the Treasury, said despite a 0.5% record low in base interest rates, the cost of lending was still rising.
He called on the banks to help stimulate lending levels, insisting the Government did not inject money into the sector as a "charitable act".
Mr Darling also called on banks to stand-over their duty to the public.
However, Ms Knight defended the current rates set by lenders, suggesting wholesale prices in the money markets are much higher than the UK base rate.
She said the wholesale price of borrowing was roughly 1%.
"As far as the major banks are concerned they are lending, and increasing their lending," added Ms Knight.
She said firms should be able to demonstrate they have capacity to repay loans, and indicated that agreements are still assessed on a case-by-case basis.
"There will be difficult judgements at the edges and that's why it's important to keep close to the (bank) manager and get that business plan right."
Small Business Federation spokesman Stephen Alambritis lauded the Chancellor for bringing banks to account.
He said: "It is hugely important that Mr Darling keeps tabs on the banks to ensure they are lending money to firms, and at fair rates."
"Firms need to be able to reap the benefits of the historically low base rate."
(PR/BMcC)
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21 November 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.
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.
02 April 2008
First Direct Withdraws Mortgages For New Customers
First Direct has temporarily suspended the sale of its mortgage products to non-customers. The telephone and online bank, a division of HSBC, will stop all products including its two-year fixed rate offset mortgage, from sale to non-direct customers. The bank said that the measure will help it cope with the high demand for its range of mortgages.
First Direct Withdraws Mortgages For New Customers
First Direct has temporarily suspended the sale of its mortgage products to non-customers. The telephone and online bank, a division of HSBC, will stop all products including its two-year fixed rate offset mortgage, from sale to non-direct customers. The bank said that the measure will help it cope with the high demand for its range of mortgages.
04 March 2013
Banks Reduce Lending
The Bank of England has published updated data on the use of the Funding for Lending Scheme (FLS). Today’s publication shows for each group participating in the FLS the amount borrowed from the Bank and the net quarterly flows of lending to UK households and businesses for the fourth quarter of 2012.
Banks Reduce Lending
The Bank of England has published updated data on the use of the Funding for Lending Scheme (FLS). Today’s publication shows for each group participating in the FLS the amount borrowed from the Bank and the net quarterly flows of lending to UK households and businesses for the fourth quarter of 2012.
13 February 2009
OFT Consults On Second Charge Lending Guidance
The Office of Fair trading (OFT) today launched a consultation on draft guidance for businesses engaged in second charge lending. Second charge loans, or 'homeowner loans', involve consumers with an existing mortgage taking out further personal borrowing secured against their home.
OFT Consults On Second Charge Lending Guidance
The Office of Fair trading (OFT) today launched a consultation on draft guidance for businesses engaged in second charge lending. Second charge loans, or 'homeowner loans', involve consumers with an existing mortgage taking out further personal borrowing secured against their home.
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.
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