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Banks Gaining Monopoly on Lending, Warns FSB

Banks Gaining Monopoly on Lending, Warns FSB

High street banks could soon have a monopoly over lending to small businesses, the Federation of Small Businesses (FSB) has warned. The business lobby group is concerned that recapitalisation, bank mergers and initiatives targeted at stimulating bank lending are stifling competition and choice for firms seeking finance.  “Business owners who are refused finance with a major lender have few alternative ways to secure credit,” said an FSB spokesman. “We want to see more alternative sources of finance provided locally, such as through post offices, financial intermediaries and Regional Development Agencies. “Struggling banks should not be sold off to other high street lenders, as this would create massive institutions which would curb competition,” he added.... »