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Wednesday, February 06, 2013

Banks being brought to heel

There is an interesting article in the Independent, which reports that Business Secretary, Vince Cable is to challenge the banks to publish weekly information about their lending levels, right down to individual branches.

They say that bank chiefs could be forced by the Government to name and shame branch managers who refuse to lend cash to struggling small businesses. Vince says that ministers are prepared to legislate to require banks to release the information if they fail to do so voluntarily:

The move comes amid continuing complaints – both within Whitehall and from industry – that the banks are sitting on cash reserves rather than passing them on to small firms.

Mr Cable is calling on them to break down the information by branches as well as constituencies in order to allow MPs to pursue managers who fail to support viable local businesses through the downturn.

This is very welcome news indeed. I have taken up issues around Banks withdrawing finance and refusing to issue loans with senior management with very little success. In my view they are continuing to withhold vital finance from businesses and have caused a number to go to the wall. The Government cannot allow that to go on and I am pleased that some action at least is being taken.
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