The Financial Policy Committee’s decision to relax bank capital requirements: media comment

 

Commenting on the Financial Policy Committee’s decision to relax bank capital requirements Louise Beaumont, Head of Public Affairs at GLI Finance said:

“Yesterday’s decision by the FPC clearly recognises that the ability for SMEs to access capital is likely to be significantly compromised as Brexit uncertainty hits financial markets and consumer confidence. As a business that has long championed the value that SMEs bring to the UK economy, we welcome any fiscal policy that will help them weather this difficult period. It is, however, important to remember that previous measures to stimulate lending by traditional banks have often failed to deliver the desired outcomes, and that it is imperative that the alternative finance industry also continues to support SMEs as it has done since the aftermath of the 2008 financial crisis. Those platforms that are able to offer specialist products that are best suited to SMEs’ particular needs have a crucial role to play not just in helping SMEs survive, but also supporting the inevitable growth opportunities that will emerge as they adjust to a new post-Brexit normal.”