Cable increases pressure on banks to lend to SMEs

UK business secretary Vince Cable has announced that he wants all banks to publish lending figures to SMEs and to give full details of why customers are turned down for loans.

Cable warned that any banks who do not meet lending targets for small businesses are going to face new taxes on bonuses, profits and balance sheets. He told MPs that Project Merlin was a one-year project and that banks must ensure that targets for the year are met.

He said to the House of Commons that extra pressure would be put on banks to ensure transparency in their actions towards SMEs. Banks in the UK have insisted that the current low lending rate to small businesses is due to lack of demand, not loan refusals. However, Cable argues that banks have discouraged applications by offering high rates and not showing interest in lending.

Read more: http://www.inspiresme.co.uk/news/general/cable-increases-pressure-on-banks-to-lend-to-smes-02847/

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