Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Bank lending rules ‘could harm UK small businesses’

by May 8, 2024
May 8, 2024
Bank lending rules ‘could harm UK small businesses’

The Commons Treasury committee has expressed concerns over proposed lending rules that could adversely affect small businesses in the UK.

These rules, put forth by the Prudential Regulation Authority (PRA) as part of the Basel 3.1 package, aim to enhance banks’ resilience but may inadvertently raise borrowing costs for small firms.

Specifically, the committee highlighted the PRA’s plan to eliminate the “SME supporting factor,” which allows banks to reduce capital requirements for small business loans. MPs warned that this move could hinder the competitiveness of British SMEs compared to their European and American counterparts.

According to the committee’s report, the removal of the SME supporting factor could increase the cost of lending for small businesses and potentially reduce the availability of finance. This, in turn, may lead to UK banks being out of step with international peers, negatively impacting the UK market’s competitiveness.

Various stakeholders, including NatWest and smaller lenders like Allica and Handelsbanken, have voiced concerns about the proposed changes, emphasizing that it could make lending more expensive and hinder SMEs’ ability to scale up and create jobs.

The British Chambers of Commerce has also raised alarms, warning that EU and US banks could undercut UK banks’ services if the changes proceed.

In response to these concerns, the Treasury committee urged the PRA to ensure that the final implementation of Basel 3.1 standards does not impose stricter capital requirements on SME lending than the current system. They emphasized the importance of maintaining international competitiveness with the EU and the US.

Additionally, the committee’s report addressed other issues affecting the SME finance market, including the de-banking of small businesses, challenges with dispute resolution services, and problems related to personal guarantees.

Dame Harriett Baldwin, chairwoman of the committee, said: “Unfortunately, what we have found over the course of the inquiry is that there are some instances where banks and regulators are making a tough world for small businesses needlessly tougher.”

Read more:
Bank lending rules ‘could harm UK small businesses’

0
FacebookTwitterGoogle +Pinterest
previous post
UK Implements Tough Measures Against Harmful Algorithms to Protect Youth Online
next post
Passport e-gates failure cause chaos at UK airports

You may also like

HMRC treats taxpayers like they’re potential criminals, says...

May 16, 2024

New HMRC figures show EIS investment grew 39%...

May 17, 2023

Development Bank of Wales is feeling good with...

May 18, 2023

Zeru Is the Best Place to Buy YouTube...

November 10, 2022

John Lewis CEO criticises Rachel Reeves over ‘two-handed’...

November 21, 2024

LearningCog: Insight Discovery, Leadership & Management

March 10, 2023

Brands warn UK must restore VAT-free shopping to...

April 28, 2025

Mastering Seasonal Marketing Budgets: Sarfraz Hajee’s Strategic Insights...

October 23, 2024

VanceAI Review: Productivity Series Offers Accessibility and Results

March 30, 2023

Sainsbury’s to cut 3,000 head office jobs and...

January 23, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Why AI and green tech are vital to SME growth in 2025

      June 10, 2025
    • Yes, it’s great to get PR coverage – until it’s locked behind a bloody paywall

      June 10, 2025
    • We have to act now to keep AI from becoming a far-left Trojan Horse

      June 10, 2025
    • SME lending delays slashed by 80% thanks to fintech-driven back-office reform

      June 10, 2025
    • UK defence innovation strategy opens new doors for SMEs in AI and autonomous tech

      June 10, 2025
    • Shark Tank study shows charming narcissists get funding

      June 10, 2025

    Categories

    • Business (8,172)
    • Investing (2,021)
    • Politics (15,580)
    • Stocks (3,138)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved