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FSB welcomes business lending review

Date Added: 04/07/2013  

A new review into business lending by the Royal Bank of Scotland (RBS) has been welcomed by the Federation of Small Businesses (FSB).

RBS has stated it is going to look into how it can better support small to medium-sized enterprises (SMEs), while maintaining safe and sound lending practices.

Steve Warwick, chairman of the FSB in London, stated that access to finance is an issue that is holding a lot of members of the body back from growing and in turn providing a boost to the UK's economic recovery.

Speaking to London 24, he cited research by the FSB that recently found half of its members that have applied for loans and overdrafts have been refused.  Mr Warwick said: "Too many businesses have lost trust in the high street banks and reviews such as this are a positive step in getting to the root of the problem."

He added: "We hope there is transparency in the data collected and that the bank helps the smallest firms, especially start-ups, understand what information they need to give when applying for a loan or overdraft."

Mr Warwick called for the review of business lending by RBS to look into how the bank signposts businesses to sector specific advice for example on exporting and noted the FSB will be willing to cooperate with the bank if it is required to do so.

Sir Andrew Large, together with the management consultant firm Oliver Wyman, were appointed to run the review into business lending at RBS.

Chief executive officer of UK corporate banking for RBS Chris Sullivan explained the bank wants to find out what it can do to support SMEs in the UK, even though it is already the biggest lender to these companies in the country.

Mr Sullivan added: "Demand for lending remains a challenge, but we want to do more than just wait for demand to materialise. We want to play our part in securing the recovery."

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Posted by Michael Beam

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