BBA Plans a Task Force to Improve Lending practices to Businesses in UK

The BBA is planning to create a new task force which will examine the lack of lending to small businesses by banks in UK. This task force will include industry experts from six largest banks in UK. They are Barclays BARC, Lloyds LLOY, HSBC, Santander BNC, Royal Bank of Scotland RBS and Standard Chartered STAN. Besides the industry experts, the panel lSO works in cooperation with the Treasury, Bank of England and the Department of Business, Innovation and Skills. This panel headed by BBA will submit a report in two months to chancellor George Osborne.

This panel also comes in response to an eight-week consultation programme in July, proposed by the government, for the purpose of improving the ways of lending by banks to businesses.

Additionally according to a report submitted in June, on Financial stability by Bank of England, said that the major banks of UK would have enough capital to provide additional lending of £50bn, if they controlled directors bonuses to freeze dividend payments and to pre-crisis levels, last year.