Banks' report will review lending

06/09/2010

A new report will be conducted by a number of banks, including the Royal Bank of Scotland and Barclays, to assess the credit profiles of small and medium-sized enterprises (SMEs) which are still being refused funding.

The banks will be paying pH, a subsidiary of Experian, to carry out the research, reports the Telegraph.

Over the next month, pH will be compiling the data which will be presented to the Treasury in October.

The banks are hoping it will convince the government not to force them to lend more money to businesses.

A source told the news provider: "The research will cost but so far the banks' presentations on business lending simply aren't being believed. Independent research is clearly needed to establish credibility."

Recently, Chris Gorman, spokesperson for the Forum of Private Business, said that if the government were to introduce targets for lending to SMEs it would not be helpful.

"If the banks really don't want to lend they will find ways of getting around the targets and massaging the figures to make it look like they have done," he added.

Posted by Sam Williams