British banks ask Britain to fully support SME lending
UK under pressure to get coronavirus-related loans faster, and some bank officials want government to consider granting them 100 percent state guaranteed, instead of relying on the banks to take the risks.
UK Finance Director-General Stephen Jones said the process of checking whether companies can repay loans takes longer than in countries like Germany, where loans are all guaranteed by the UK. State.
There is currently a massive backlog of loans for amounts under £ 25,000, which could be issued much faster if the government assumed all the risk. In the current system, according to Jones, banks assume about 20 percent of the risk.
According to Jones, the backlog could be dealt with more efficiently if the loan rules were relaxed. However, Jones told Parliament’s Special Treasury Committee that “a few more days of patience” would be desirable.
The ready, which aim to help people in the aftermath of the viral pandemic that has forced ‘normal’ human life and work to shut down, have helped people keep paying their bills and buying food and other items essential.
There have been other measures to try to stimulate the economy. For example, the government has asked regional government bodies to negotiate acquisition card limits £ 20,000 for single limit transactions and £ 100,000 for key cardholders, as well as a monthly limit of £ 100,000 for business purposes.
In addition, Funding Option has adopted a open banking agreement with 20 non-traditional lenders, hoping to speed up loans and make people pay.
Further steps are likely to be taken in the future, with bankruptcy on the horizon for many businesses unable to support themselves. Construction rates and new car registrations have fallen and consumer confidence is low.