Big banks refusing to disclose how they are helping firms in Covid-19 pandemic
A poll found that Lloyds (run by Antonio Horta-Osorio) and Barclays were the least helpful banks
Some of Britain’s biggest banks are refusing to disclose how they are helping firms stricken by the Covid-19 pandemic – prompting critics to ask what they have to hide.
Santander, Barclays and Lloyds have ignored requests from MPs and business leaders to publish daily lending figures under the Coronavirus Business Interruption Loan Scheme (CBILS).
This means Government officials have little idea of whether the billions of pounds of aid promised to smaller firms is reaching those who need it.
HSBC and RBS are the only major lenders to have revealed their lending. A recent poll by the Forum of Private Business of its members found that Lloyds Bank (run by Antonio Horta-Osorio) and Barclays – neither of which will disclose CBILS data – were the two least helpful banks.
Chancellor Rishi Sunak said on Monday that some 12,000 loans worth just under £2billion had been made by the banks through CBILS, which allows companies with turnover of up to £45million to access loans of up to £5million, with the Government taking on 80 per cent of any losses suffered by the banks.
But many businesses say lenders are asking for detailed forecasts which they cannot provide, or are turning them away.
Almost half the loans made by the start of this week – 5,600, worth £936million – were by Natwest owner RBS.
The Treasury Committee and the all-party parliamentary group (APPG) on fair business banking have written to the British Business Bank, which administers CBILS, asking it to push lenders into revealing figures. But Lloyds, Barclays and Santander have yet to comply.
Ian Cass, of the Forum of Private Business, said: ‘Banks obviously have something to hide. The message, loud and clear from members, is that despite years of banking with them their banks are not interested in helping small businesses, and Lloyds is by far the worst, followed by Barclays.’
Nic Conner, at business finance adviser Rangewell, said: ‘Real-time data on CBILS will promote successes, encouraging businesses to apply, as well as highlighting pinch points allowing the Government to take action.’
Kevin Hollinrake, the Conservative co-chair of the APPG, added: ‘I can’t understand what the banks have got to hide. Banks should be proud to publish the numbers.’
Vernon Hill, the founder of Metro Bank, said: ‘Losses on bad loans will be dwarfed by the far bigger loss to the economy if firms go under.’
Santander and Barclays said that they would be happy to provide further information to the APPG and Treasury Committee.