A new taskforce is being formed by six bank bosses, with the aim of improving lending to UK businesses.
In a letter to the chancellor, George Osborne, the head of the British Bankers’ Association, Stephen Green, outlined plans for a group to discuss how the banks can improve businesses’ access to funds, and to explore what can be done to create a stronger market for business finance.
Green wrote in the letter: “There is a real need to make sure that viable businesses are able to obtain the finance they need to support the recovery of the UK economy.”
The Taskforce, which will also include members of the Treasury, the Department for Business, Innovation and Skills, and the Bank of England, will assess the demand for business finance and the challenges faced by both banks and businesses. They will discuss ways to overcome those challenges and will explore other issues relating to business lending.
The announcement comes as complaints about small business loans have reportedly jumped 119% in the year to March, with the financial ombudsman receiving almost 500 complaints on the subject.
© Crimson Business Ltd. 2010