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New panel launched to monitor lending

Nov 12 2008

A new panel has been formed which will monitor the cost and availability of lending from five major banks to small businesses.

Peter Mandelson, the business secretary, has revealed the new panel will operate with information from lenders on the availability, risk and overall cost of lending to small to medium-sized enterprises (SMEs).

He says it is 'critical' that finance is made available to small companies and the new panel will give 'a greater insight' into the current situation.

'We have opened up a dialogue between SMEs and banks, and we will continue to work together to make sure we have the resources in place to see UK plc through this difficult economic climate,' Mandelson says.

Talks will now be held with each bank on the level of data which will be provided to the panel.

Senior officials from the Department for Business and the Treasury, in addition to Bank of England officials, will sit on the panel.

The decision was made at the first small business finance forum, which sees banks and small business representatives meet and discuss the availability of lending.

Mandelson previously described it as an opportunity to 'thrash out' issues and 'tease out the problems'.

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