Member Article

RBS launch review into untapped £20bn

RBS have commissioned a review of their lending processes to SMEs as the bank identify a £20bn pot of untapped cash in their coffers.

Sir Andrew Large, former Deputy Governor of the Bank of England will lead the review with management consultant firm, Oliver Wyman..

The review will identify how RBS and NatWest can enhance SME lending and address the perception that banks are not lending to businesses.

RBS CEO of UK Corporate Banking, Chris Sullivan, said: “We are the biggest lender to SMEs in the country, and have identified £20 billion in surplus deposits that we want to put to work to support the economy - but we constantly hear that businesses can’t get the finance they need. We have to bridge this gap.

“With the economy now moving to recovery, it is the right time to have a fresh look at lending, to make sure we are making the right judgements, to challenge ourselves to get better and support even more businesses.

“Demand for lending remains a challenge, but we want to do more than just wait for demand to materialise. We want to play our part in securing the recovery. If there are loans that we could and should be making, but are not, then that will change. If there are things we can do better – we will.”

Sir Andrew Large added: “There is a disconnect between what the bank says it is doing on lending, and what many businesses say they experience on the ground. That is why we have been asked to conduct an independent review to establish what is going on, and what steps can be taken. Clearly, the business community needs to have confidence that deserving firms can get the support they need.”

This was posted in Bdaily's Members' News section by Tom Keighley .