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18/03/2011
Chancellor Urged Not To Forget About Finance In Budget
A small business support organisation has urged George Osborne not to forget the issue of bank lending in the forthcoming Budget.
The Forum of Private Business is calling on the Chancellor to remember that the problem of funding for smaller firms is still far from resolved, despite the recent ‘Project Merlin’ agreement on bank finance.
While welcoming the target of a 15% increase in lending to smaller businesses outlined in February’s agreement, the Forum has pointed out that many banks claim that the demand for credit from SMEs is subdued.
As a result, the not-for-profit business support organisation believes that in order for the banks to meet the new targets, steps have to be taken to simplify the lending process.
In its recent Budget submission, A Budget to Get Britain Trading, the Forum argued that the Government needs to implement measures to make the process more transparent, flexible and ensure it is inexpensive for SMEs to use.
This may well require a relaxation in regulatory law to allow relationship managers to make lending decisions on a local level, along with the creation of clear timelines for application processes and a clarified complaints process for SMEs who wish to object to the rejection of an application.
This, the Forum believes, will help undo the sense of disillusionment expressed by many business owners towards the issue of bank lending. It should encourage applications both from businesses turned down for finance in the past and from SMEs which have never applied for bank lending due to doubts over their chances of being accepted.
The Forum’s most recent Referendum ballot of members, which was carried out in December 2010, found that funding is still a huge issue for smaller businesses.
Unprompted, 24% of Forum members said better regulation of the banks and finance should be the priority for their elected representatives. Referendum also found that finance has become an issue for an increasing number of SMEs, despite fewer businesses reporting cash flow issues.
In its Budget submission, the Forum also calls for the Department for Business, Innovation and Skillls to use intelligence provided by British Bankers Association research to hold the banks to account.
Moreover, the Forum argues that the new Bank of England regulator should set specific timelines for decisions to be made on lending, written feedback to be provided on loan rejection and the time for an internal escalation within the bank to be made transparent.
(BMcN/KMcA)
The Forum of Private Business is calling on the Chancellor to remember that the problem of funding for smaller firms is still far from resolved, despite the recent ‘Project Merlin’ agreement on bank finance.
While welcoming the target of a 15% increase in lending to smaller businesses outlined in February’s agreement, the Forum has pointed out that many banks claim that the demand for credit from SMEs is subdued.
As a result, the not-for-profit business support organisation believes that in order for the banks to meet the new targets, steps have to be taken to simplify the lending process.
In its recent Budget submission, A Budget to Get Britain Trading, the Forum argued that the Government needs to implement measures to make the process more transparent, flexible and ensure it is inexpensive for SMEs to use.
This may well require a relaxation in regulatory law to allow relationship managers to make lending decisions on a local level, along with the creation of clear timelines for application processes and a clarified complaints process for SMEs who wish to object to the rejection of an application.
This, the Forum believes, will help undo the sense of disillusionment expressed by many business owners towards the issue of bank lending. It should encourage applications both from businesses turned down for finance in the past and from SMEs which have never applied for bank lending due to doubts over their chances of being accepted.
The Forum’s most recent Referendum ballot of members, which was carried out in December 2010, found that funding is still a huge issue for smaller businesses.
Unprompted, 24% of Forum members said better regulation of the banks and finance should be the priority for their elected representatives. Referendum also found that finance has become an issue for an increasing number of SMEs, despite fewer businesses reporting cash flow issues.
In its Budget submission, the Forum also calls for the Department for Business, Innovation and Skillls to use intelligence provided by British Bankers Association research to hold the banks to account.
Moreover, the Forum argues that the new Bank of England regulator should set specific timelines for decisions to be made on lending, written feedback to be provided on loan rejection and the time for an internal escalation within the bank to be made transparent.
(BMcN/KMcA)
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The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.
07 November 2013
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England's Monetary Policy Committee has voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375bn.
Bank Of England Maintains Bank Rate At 0.5%
The Bank of England's Monetary Policy Committee has voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375bn.
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