BANKS MUST GIVE SMALL BUSINESS A BETTER DEAL

BANKS MUST GIVE SMALL BUSINESS A BETTER DEAL

Following warnings from the Federation of Small Business over the extent of Lloyds Group and Royal Bank of Scotland's dominance of the small business banking market in Scotland SNP MSP Professor Chris Harvie a member of Scotland's Economy Committee said:

"Lloyds and RBS have over two thirds of the market between them. That is not good for competition and not good for Scotland’s small businesses.

"Last month, a report by the Scottish Government’s Chief Economist Dr Andrew Goudie made clear that the slightest policy change from either of these banks would impact on Scottish small businesses.

"While the Scottish Government has taken steps toward the establishment of a Scottish Investment Bank which may offer a new route to finance for small businesses, the UK Government has not used its shareholding in RBS

and Lloyds to effectively encourage these banks to back small businesses and many have seen their overdrafts cut, loans rejected and charges increased despite running successful and profitable businesses.

"Banks need to be careful with the money they lend but it is absolutely unacceptable to allow the small businesses which drive our local economies to suffer because of bad banking practices."