Banks blamed for a hard life
Friday 27 January 1995
An unflattering picture of banks proving unreliable in a crisis, and providing overall poor service, emerged from the Bank Relationship Survey of 1,500 small firms conducted by Manchester Business School and the Bank Consultancy Group.
Iayn Clark, senior partner of the Bank Consultancy Group, said: "Even though the nightmare year of 1992 is over, the large banks are still preoccupied with profit rather than customer service and are making it difficult for many small companies to borrowbecause requirements for security and guarantees have become even more onerous."
The survey found customers of Barclays, Midland and RBS more likely to encounter lending restrictions. Only half those surveyed saw banks as providing dependable support in a crisis.
"Given the high reliance of industry on overdrafts legally repayable on demand, the implied financial insecurity is a concern that will almost certainly exact a price in tempering business expansion," said Doug Wood, of Manchester Business School.
Only 33 per cent of customers were offered fixed-term loans as an alternative to overdraft finance. These figures sit at odds with the findings of a recent report by the Bank of England on financing small firms.
The report said fixed-term loans had taken over from overdrafts as the dominant form of finance for small businesses in a generally improving climate.
- 1 Enrique Iglesias injured trying to catch a drone mid concert
- 2 Caitlyn Jenner, formerly Bruce Jenner, reveals new look on Annie Leibovitz shot Vanity Fair cover
- 4 Man on naked bike ride gets ejected after becoming aroused
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Why this year's general election was the most unfair in Britain's history
iJobs Money & Business
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...
£25 - £30K: Guru Careers: We are seeking a highly-motivated and ambitious Comm...
£30 - 35k: Guru Careers: We are seeking a Pricing Analyst to join a leading e-...