SME Finance


1 Introduction

2 The SME finance market

Demand-side issues

Awareness and understanding


The “perception gap”

The supply of finance to SMEs

Equity finance

Bank lending

Competition in the provision of SME finance

Banking competition

The RBS Alternative Remedies Package

Innovation and alternative finance

The rise of alternative finance

Government initiatives

3 Misconduct and regulation in SME banking

Past misconduct in SME banking

An overview

RBS Global Restructuring Group (GRG)

The regulation of SME lending

The regulatory perimeter

Awareness of the lack of regulatory protection

Past consideration of SME lending regulation

Should SMEs be expected to “fend for themselves”?

The Government’s position on the regulation of SME lending

Voluntary codes and the Senior Managers and Certification Regime

Conclusions and Recommendations

4 Redress

The Financial Ombudsman Service

The ability of SMEs to access the Ombudsman

FOS effectiveness and its ability to take on an expanded role

Voluntary redress schemes for SMEs

IRHP scheme

The GRG scheme

Clydesdale TBL scheme

Limitations on the FCA’s powers

Barriers to justice for SMEs

The case for a Financial Services Tribunal

Conclusions and recommendations

Conclusions and recommendations

Formal minutes


Published written evidence

List of Reports from the Committee during the current Parliament

Published: 26 October 2018