The Banking Sector responded to criticism over how it treats small businesses in need of lending by saying that many of those who work out of serviced office space can now make use of the ‘lending taskforce’ which includes all of the six major banks in the UK such as the RBS, Barclays, and Lloyds.
Vince Cable placed pressure on banks to start lending to small businesses or face a series of consequences. It is perceived that better lending to small businesses will create new jobs which in turn will help boost the economic recovery.
The BBA (British Banker’s Association) announced in response that they have created a series of proposals that will help to stimulate the private sector with the top figures from UK banks working on groups that will troubleshoot the problem of banking lending.
Chairman of HSBC, Stephen Green, stated in a letter written to Chancellor George Osborne that the banking sector is aware of the need to provide finance to viable businesses in order to support the UK economy and that the taskforce will help explore the issues that surround lending so that finance can be given out better.
The announcement is apparently the Banking Sector’s response to the criticism they have been facing over restricting finance to SMEs.