A government scheme requiring banks to refer small firms rejected for loans to alternative finance providers should be up and running by next year, the managing director of the British Business Bank said.
The scheme is part of government plans to encourage lending to small businesses and fill a hole left by Britain's biggest banks
scaling back lending to bolster capital and meet tougher regulatory rules following the financial crisis of 2007-9."We will definitely want to have something in place by 2016. The banks need to implement it and we need to get the systems right. It's better that the system is implemented well than we rush it," Andrew Van Der Lehm, managing director of the British Business Bank, told Reuters.
Britain's finance ministry said last year that it would require 10 banks including Royal Bank of Scotland, Barclays, Lloyds Banking Group and HSBC to offer businesses whose loan applications they have rejected a referral to alternative finance providers.
ADMIN: HAVE THE GOVERNMENT NOT LEARNED THAT THE 'REGULATED' BANKING SECTOR WAS OPEN TO WIDE SPREAD ABUSE - THE UNREGULATED SME FINANCE SECTOR IS OPEN TO WIDESPREAD FRAUD
http://uk.reuters.com/article/2015/03/24/uk-banks-lending-idUKKBN0MK00720150324
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