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

Ford cuts 3,200 jobs in Europe and moves...

January 24, 2023

UK car production slumps to lowest April levels...

May 29, 2025

A Guide To Using MetaTrader 4 For Forex...

September 14, 2022

Employment Rights Bill: How It Could Affect Business...

May 21, 2025

Getting To Know You: Lionel Lodge, CEO &...

January 22, 2023

Microsoft to cut 10,000 jobs as tech firms,...

January 19, 2023

April Retail Sales Plummet Due to Severe Weather...

May 24, 2024

French tax adds to woes of British second...

August 30, 2023

UK economy contracts in January, signalling a tougher...

March 14, 2025

Pollo.ai Review: All-in-One Tool for AI Video and...

February 15, 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

    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025
    • Tech ETFs are Leading Since April, but Another Group is Leading YTD

      June 7, 2025
    • TIMELINE: Inside the evolving relationship between Trump and Musk from first term to this week’s fallout

      June 7, 2025
    • Deadly drone wars are already here and the US is horribly unprepared

      June 7, 2025
    • Week Ahead: NIFTY’s Behavior Against This Level Crucial As The Index Looks At Potential Resumption Of An Upmove

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,564)
    • Stocks (3,136)
    • 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