RBS kicks off independent review of lending practices

3rd Jul 2013 09:04

Royal Bank of Scotland (RBS) has hired former Bank of England deputy governor Sir Andrew Large and management consultancy Oliver Wyman to review its lending practices to small and medium enterprises (SME). The 81% state-owned lender said it has found £20bn that can be lent to small firms, the BBC reported.The review will look into how the company makes its decisions on SME lending by examining the views of customers, business groups, regulators and the government. SME customers will be able to express their experiences of lending by RBS on a dedicated website for the review, which will take place over the summer.The report's findings and recommendations will published later this year.The bank's net lending to business fell by £1.6bn in the first quarter of 2013 despite accessing the government's Funding for Lending scheme, which aims to boost lending by banks.RBS said review will help the bank identify ways to improve its support to SMEs and the economic recovery."Demand for lending remains a challenge, but we want to do more than just wait for demand to materialise," said Chris Sullivan, RBS's head of UK corporate banking."We want to play our part in securing the recovery."RD