Newer banks are being excluded from government initiatives to increase the financing of small businesses, OakNorth has claimed.
Liam Fox, the secretary of state for the Department for International Trade, has announced that UK Export Finance (UKEF) will partner with five of the UK’s biggest banks to deliver government-backed financial support to exporters.
The partnership is expected to offer businesses access to millions of pounds in government export support and will feature Barclays, HSBC, Lloyds Banking Group, RBS/NatWest and Santander.
“Since Brexit, large banks have been retrenching from the SME lending market, so the fact that the government is taking steps to rectify this and encourage large banks to continue lending despite ongoing uncertainty is a step in the right direction,” said Rishi Khosla, CEO and co-founder of OakNorth Bank.
However, Rishi was very disappointing that smaller, newer banks like OakNorth had once again been excluded from the process despite what it had already done for SME financing in the UK.
“This is reminiscent of what happened with the British Business Bank’s Help to Grow Programme – another government guarantee scheme.
“A large bank was the first to be enrolled, but didn’t close a single deal under it for over 10 months.
“We became the second bank to join it in January this year and have already closed several deals under the programme.
“If the government is serious about making this initiative work, it should be working with new banks like us, which are in a much stronger position to actually make a difference to British SMEs.”
Commercial mortgage brokers positive despite Brexit concerns
Almost four-fifths of commercial mortgage brokers (78%) said they felt confident about the lending environment in 2018, up from 72% in 2017, according to new research.
Metro Bank names new commercial banking director
Metro Bank has appointed Jamie Sim (pictured above) as a commercial banking director within the commercial real estate team.
The launch of Open Banking
The launch of Open Banking at the weekend is clearly an important milestone in opening up the UK retail banking industry to much-needed competition.
Aldermore appoints specialist vehicle valuations head
Tim Bearder has joined Aldermore as its new head of specialist vehicle valuations.
Millennial banking app secures FCA approval
Emma Technologies Ltd has received approval from the FCA.
Open Banking goes live: industry reacts
The launch of the Open Banking scheme last week has presented many opportunities, but as one bank has stated, data sharing alone will not revolutionise the market.
EIB and Bankia to allocate €800m to SMEs and mid-cap projects
The European Investment Bank (EIB) has agreed a €400m loan with Bankia which will provide finance for Spanish SMEs and mid-cap (up to 3,000 employees) projects.
Open season on Open Banking
Reading the national media on Open Banking, I get the sense of an impending cock-up of England World Cup football proportions.
Charter Court agrees to sell its interest in mortgage securitisation
Charter Court Financial Services Group PLC has agreed to sell its entire economic interest in the Charter Mortgage Funding 2017-1 PLC securitisation (CMF 2017-1) for £26.5m.
Monzo opens API to third-party companies
Monzo has announced that it has made an interim API accessible to third-party companies authorised as Account Information Service Providers (AISPs) by the FCA.