Mark Carney announces intention to shake up British banking

IN: Business news

Speaking at a cross-party Treasury Select Committee last week, recently appointed Bank of England Governor Mark Carney called for greater competition in the British banking sector, highlighting the need for challenger banks in the market.

Carney also praised the initial steps the British government has made to implement innovative schemes in favour of promoting economic growth, including the Funding for Lending Scheme.

 "In the Bank's Q4 Credit Conditions Survey, lenders reported significant increases in the availability of credit to medium and large corporates," said Carney, summarising, "The early signs of the Scheme's impact are therefore encouraging."

Lending to smaller business has been less promising which many industry experts have attributed to mainstream banks deciding to shrink their balance sheets. Aldermore, however, is committed to reversing this trend, seeing SMEs as key feature in efforts to reinvigorate the British economy.

To achieve this, the Bank has developed close communication ties with the UK SME community in order to hear a first-hand account of the challenges facing smaller firms in today's business environment. This interaction has enabled Aldermore to adapt the Bank's services to the specific needs of this vital group of British businesses.  As a result, Aldermore has already been able to lend over £228 million to British SMEs, representing 46 per cent of all credit extended through the Funding for Lending Scheme.

Placing such value on how the bank can best serve the small business community, Aldermore is delighted to see Carney taking a proactive stance to shake up British Banking.  Looking towards the future, Aldermore is keen to see how the Bank of England delivers on this promise, as a keen supporter of the FLS and other initiatives to provide fairer, more transparent banking conditions for SMEs.

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