Risk & Economy » Regulation » British ‘Big Four’ banks less willing to lend than Santander

British 'Big Four' banks less willing to lend than Santander

Poll by eBay finds UK SMEs more likely to get credit from Spanish bank

(SHARECAST) – Online auction site eBay has joined the chorus of organisations grumbling about a lack of lending to small businesses on the part of banks.

The web site’s Online Business Index, a biannual report into the attitudes and performance of hundreds of online businesses operating on eBay’s UK site, indicated that the so-called Big Four British banks – Barclays, HSBC, Lloyds Banking and Royal Bank of Scotland (RBS) – are almost twice as likely than Santander to refuse to lend to online businesses that use eBay.

RBS is the most likely of the Big Four to refuse finance, the survey showed, with 37 percent of respondents saying they had been refused financing by the part-nationalised lender.

Even the best of the Big Four, Barclays, had a refusal rate of 32 percent, as against 19 percent for Santander, the Spanish bank that recently rebadged former building society brands such as Abbey, Alliance & Leicester and Bradford & Bingley under the parent company’s name.

The report appeared to touch a nerve with the British Bankers Association (BBA), the trade body of the clearing banks. The BBA said that eBay’s numbers did not tally with “several independent surveys” which suggest a refusal rate in the mid-teens.

The majority of respondents to eBay’s survey said they had seen little in the way of increased levels of helpfulness from the banks. Lloyds fared particularly badly on this measure, with 58 precent of the banks’ customers who completed the survey saying the bank had failed to become more helpful. RBS’s customers were split 50/50 on the issue while once again Santander topped the poll, with 48 percent of respondents saying it had become no more helpful.

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