Brantwood School, Sheffield.
Bankers 'are being unfairly criticised,'
Oh boo bloody hoo - it’s so sad for them!
By Bob Rae. Published Date: 11 /8 / 2010
www.thestar.co.uk/business/Bankers-39are-being-unfairly-criticised39.6468453.jp
Rocketing profits and rising fees, combined with tales of tougher borrowing conditions, increased scrutiny and a lack of lending, have put Britain's banks firmly in the firing line, once again.
But, at RBS NatWest, the taxpayer-owned bank which announced pre-tax half year profits of £1.1billion last week, national head of business and commercial banking, Peter Ibbetson says bankers are being unfairly pilloried. (?!)
Banks are as keen to help as many businesses as possible as the government, politicians and business bodies believe they should be, Mr Ibbetson told Star Business, during a visit to Sheffield. (?)
"We understand that businesses lost confidence in the system and we have to recover that. Businesses have been nervous that banks weren't there to support them and there was a lot of uncertainty," he says. "We are absolutely out there, supporting businesses. (not a certain school though!)
Mr Ibbetson says there is an issue about demand that has led to government criticism that bank lending to small businesses has fallen.
"In a down cycle, businesses repay borrowings very quickly and in 2009 they were repaying debt about 50 per cent faster than in 2007. What's more, 25 per cent fewer businesses area coming to us for debt and those that are coming are asking for about 25 per cent less than in the up cycle," he says.
He denies that lending criteria have become tighter. (!!!)
"The criticism is that we have raised the bar, but that is not true," he says.(!!!)
"We have exactly the same criteria as before, but we are asking more questions now. If we weren't asking more questions in a down cycle, we wouldn't be doing the job properly."
Peter Ibbetson says RBS has done a number of things to boost business confidence and demonstrate it is open for business. (like asset stripping a school?!)
These include removing the "pay on demand" clause on overdrafts for smaller businesses, capping fees at a maximum of 1.5 per cent for the whole of the year, putting senior staff into a business free of charge for a day to provide advice, launching special regional and manufacturing funds, offering capital payment holidays and setting up a special help line.
Mr Ibbetson argues that the support of the banks, combined with the preparedness of many businesses, has meant that fewer have failed during the current recession than in previous ones, and he defends the rise in lending margins.
"Margins were too fine to recognise the risks banks were taking in the SME sector. We need to price for risk. Margins have gone up by one per cent, but many businesses are still paying less than half what they were paying two years ago," he says. "For every 100 loans we make, we can only get one wrong before we start losing money."
And that emphasises the message Peter Ibbetson is keenest to get over to business borrowers.
"Please come and talk to us, share your plans and financial forecasts with us. We are there to work with you and help you sustain your business in the down cycle.
(unless you are called Brantwood School, of Nether Edge, Sheffield of course – then RBS’ll stuff your little girls good and proper!)
www.youtube.com/watch?v=Rwkq48UetR8
"Whether we go into a 'double dip' or make a gradual exit from recession, we have a way to go and there will be cash flow demand. We are ready to support business," he says.
Don’t like this? Then behave yourself, and stop being a cheat and a liar!
Tough! It’s call FREE SPEECH and having an opinion!
http://theangrycheese.blogspot.com/2010/04/brantwood-school-asset-stripped.html
http://forums.ukcolumn.org/showthread.php?tid=1406&pid=6376#pid6376