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FSB: Banking system must be reformed for good of smaller firms PDF Print E-mail
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Latest Recruitment News - HR and Recruitment Legislation News
Written by DirectNews Feed   
Tuesday, 05 July 2011 00:00
FSB: Banking system must be reformed for good of smaller firms Smaller businesses offering permanent recruitment in central London would benefit if the UK's banking system was overhauled in the wake of the recession.

That is the opinion of John Walker, national chairman of the Federation of Small Businesses (FSB), who has called on the Independent Commission on Banking (ICB) to "shake up" the sector.

Figures published recently have shown that many small companies are having their attempts to expand in the aftermath of the global economic downturn stunted by a lack of fluidity in the lending market from banks and building societies.

However, Mr Walker pointed out that "experience shows that demand for credit is at its highest when the economy starts to enter a recovery period", meaning that financiers are potentially harming the country's financial rejuvenation by refusing loans.

Therefore, he urged the ICB - which was formed by the Chancellor of the Exchequer in June 2010 - to take action to improve lending conditions.

Posted by James Strang
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