FPB calls for tighter loan scrutiny

Date: 25th August 2010

The Forum of Private Businesses (FPB) has called on the government to place banks under tighter scrutiny over their lending figures to smaller firms.

Chris Gorman, a spokesman for the organisation, has claimed this would be the best way to ensure that banks are helping smaller businesses access finance.

The expert offered the suggestion as an alternative to government-set lending targets.

According to Mr Gorman, UK banks will always find a way to avoid lending money if they do not want to do so.

"Banks have been very restrictive in their lending and when they have been giving loans it has often been at a very high interest rate with excessive demands for security," he said.

"If the banks really don't want to lend they will find ways of getting around the targets and massaging the figures to make it look like they have done."

He said tighter scrutiny of lending figures and ensuring economic recovery is the best way to improve access to finance for smaller firms in the UK.

Posted by Jacob Williams