HSBC Chairman Announces Small Business ΓÇ£Lending TaskforceΓÇ¥
In what appears to be a positive response from the Banking Sector to recent criticism over the difficulties many small businesses are experiencing securing lending, many of whom often choose to base themselves in serviced office space, a ΓÇ£lending taskforceΓÇ¥ has been launched by bosses of six major British banks including Barclays, Lloyds and RBS.
With Vince Cable having vocally applied pressure on banks to get loans moving for small businesses, a process seen as vital to avoid stifling the economic recovery, the British BankerΓÇÖs Association (BBA) announced the outlining of a series of proposals designed to stimulate private sector recovery, with leading figures from the UKΓÇÖs ΓÇ£top banksΓÇ¥ creating working groups designed to assess the lack of lending to businesses and propose solutions.
ΓÇ£We, like you, believe 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,ΓÇ¥ wrote Stephen Green, Chairman of HSBC, in a letter to Chancellor George Osborne.
ΓÇ£The objective of the taskforce is to explore the problems currently affecting securitisation markets… and to explore other issues that will influence the ability of UK businesses to obtain the finance they need to support private sector growth.
ΓÇ£We agree with you the essential importance of ensuring that credit is available to viable businesses and particularly for the recovery.ΓÇ¥
This announcement would appear to be a collective fight back from the Banking Sector at the continued criticism that they have been starving SMEs through tough new leading measures.