BANK SKILLS A CONCERN FOR LENDING REVIEWER - During the recession credit for small business dried up as the banks' capacity to lend was restricted. Demand for credit also fell. To examine the problem, the Credit Review Office was set up to assess whether banks had been unfairly refusing credit to small businesses. The office yesterday published the findings of its first three months in operation.
Credit reviewer John Trethowan said there were concerns about the skill levels of some bank staff at the 'front line' of business lending. He said some younger managers in banks lacked the experience to put full details through to their head office for sanction.
He added that the knowledge industry was quite new for banks, and it was challenging for them to work out cashflow for these businesses. But the credit reviewer said banks were working on improving the skills of those staff involved in business lending.
Mr Trethowan said the two big banks' lending policies state that there are no constraints on lending to any sector, only that the firms should be viable.
He said that during the boom, money was extracted from some businesses to invest in property, and this became a problem after the property crash.
Mr Trethowan invited ISME chief Mark Fielding to talk to him, following concerns expressed by the small business group.
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NEWS AND CURRENCIES - Food group Glanbia has said it is on track for a 'very strong' first half performance compared with the same period last year.
The euro is trading at $1.2708 and 83.48p sterling.
