Banks condemned by Treasury Committee for failing to support small firms

The UK's banks have been dealt another damning blow in the latest report on the banking crisis from the Treasury Committee. Bankers were blamed for making "an astonishing mess" of the financial system, leaving the Committee "very concerned about the availability and terms of credit available to the small business sector". Committee chairman John McFall added: "There is clearly an unresolved inconsistency between, on the one hand, bankers' assurances that they are increasing their lending and, on the other hand, widespread and clearly sincere complaints that credit is difficult to obtain and increasingly expensive."

The report, while welcomed by the small business sector, has been criticised by the British Bankers' Association (BBA) for not doing enough to reflect the work by the banks to help restore the economy and for "seeking headlines". BBA chief executive Angela Knight said: "As an industry we have stepped up to the plate of change and are already addressing many of the points identified by the Committee."

Read more here: http://www.parliament.uk/parliamentary_committees/treasury_committee/tc0809pn37.cfm

www.ukba.co.uk