Send to Friend
Insider Yorkshire Business Link Breakfast 2010
Skipton and Ripon MP Julian Smith launched a scathing attack on banks at Insider’s breakfast debate in Barnsley, arguing that the sector’s morality is “seriously in question”.
At the event, attended by more than 80 business professionals gathered at the Holiday Inn, Barnsley, Smith said he was “appalled” by the behaviour of banks and received letters on the subject from constituents every week.
“It’s not just on lending, the way banks behave with deposit takers is making it difficult to change accounts. I would argue [they are] deceiving customers on rates. The morality of that industry is in question and I believe it is vital that we address that issue.”
Smith urged businesses that encounter problems securing bank funding to contact their local MP, as ‘political pressure’ can help to get problems solved. Gary Lumby, director of small business banking at Clydesdale and Yorkshire Bank, told the audience that not all banks should be tarred with the same brush.
“The media and politicians have a tendency to say “the banks” as if every bank behaved in the same way in the financial crisis. That is unfair on some banks that have behaved in the right way.”
He added: “Some banks were over-exposed and they have only got themselves to blame for that.”
However, Smith countered: “You have got to admit that the morality of your sector is significantly in question and it has not done anywhere near enough to address its faults.” Lumby replied: “The reputation is damaged and it will take a long time to get back.”
Lumby added that banks were open for lending, but not enough customers were coming forward to ask for money. “Prices have gone up, that has put some people off,” he said. “Businesses are also concerned about the future – they are looking to reduce their costs and not take on unnecessary risks.”
The debate focused primarily on the private sector’s ability to plug the gap left by public sector spending cuts. For a full report, see October’s issue of Insider.
Please complete the following fields to send the details of this item to your friend: