FSB calls for changes to the banking sector

The Federation of Small Businesses (FSB) has called for a range of changes to the financial services industry next year.

FSB chairman John Wright said it was vital for small businesses that those in banking jobs return to their normal lending criteria in order to help firms get better access to credit.

He also said that his organisation would welcome the arrival of non-UK banks into the financial sector to stimulate more competition in the industry.

On behalf of the FSB he went on to suggest that: "Regional Development Agencies should be turned into regional finance houses, using funding from the European Investment Bank and pushing the Enterprise Finance Guarantee and regional venture funds."

Mr Wright also stated he would support proposals to turn Post Offices into "Post Banks", a move he said would provide valuable funding for small firms while also ensuring the survival of the Post Office network.

Earlier this month, Lord Mandelson opened a public consultation period on plans to offer banking services and products through the organisation.

Updated: 30 December 2009.
Categories: banking-and-financial-services, finance-and-accounting, market-and-industry-news.