BANKERS – FORGET THE FACTS, AND ACCEPT THE REALITIES

Despite a huge-spend on PR and advertising, aimed at persuading us all that banks are lending to business, the reality is that most company-owners are faced with reduced lending and increased bank-demands.

Why?  Because the former funders for big business have either collapsed or withdrawn from the market, leaving High Street banks to replace the funding for these big “low-risk” clients – leaving precious little credit available for smaller, “higher-risk” clients.

Most banks have been caught like rabbits in the headlights – they just don‘t understand how to move from their boom-time “deal & bonus” mentality to re-engage the real world.

We have seen a huge bank-spend on advertising, shrieking  “We‘re lending to business”.

But this is not reflected by owner-managed businesses.

Meanwhile, the media is reporting a return of “obscene” bank bonuses, while the Government experiments with signals about restricting that trend.  Some pundits predict that banks are just waiting for the return of commercial-property values to “pull the plug” on more businesses.

When will they join MPs in learning to hear what their stake-holders are saying?

Adverts and sponsorship of regional news-media initiatives is no answer:  you need to restore commercial and retail faith in your ability to be a trust-worthy bank by delivering, and then reporting, what is expected – rather than a restoring the trough to provide massive bonuses to reward dodgy-deal-making.

Right now, every bank (whether owned by tax-payers or not) has the opportunity to take a lead.  None has yet taken that opportunity.