Banks face new mis-selling scandal

By Adrian Quine, Business Reporter Firms were sold fixed-rate business loans to protect them against interest rate changes, but banks secretly added a swap, which had the reverse effect. This led to firms going bankrupt. “Embedded swaps” are unregulated. The British Bankers’ Association (BBA) says any customer unhappy with a product should contact their bank.…

Board to Examine Lending Problems

The Access to Finance Implementation Panel (AFIP) has been launched by finance minister Simon Hamilton and enterprise minister Arlene Foster. Its chairman will be Russel Griggs, a lead reviewer of the banks’ appeals processes. Hamilton said: “This panel will put a new focus on banking and access to finance issues here, particularly business lending. “For…

Business Matters – SME Bank Relationships

Pauric McGowan, professor of entrepreneurship & business development at Ulster Business School, discusses the future agenda for the relationship between banks and SMEs. A major study by the Federation of Small Businesses (FSB) and the Ulster Business School (UBS) delved into the views of SME owner–managers on the key elements that make up their relationship with their…