BBA promises to help customers
In an attempt to restore trust in the banking industry, the British Bankers' Association (BBA) has announced a new "promise" to reassure small businesses - a move which could also benefit individuals by helping to restore market confidence.
The pledge, which comes under the umbrella agreement of the Banking Code, sets out to treat small businesses "sympathetically" if they face financial difficulties as a result of the credit crunch.On of the key planks of the new pledge is the bankers promise to continue granting cheap loans at competitively priced rates to businesses.
Banks have also said they will advise businesses to seek independent advice and compare loans rather than basing their decisions on partisan recommendations.
Angela Knight, chief executive of the BBA, said: "The UK's banks want to see their customers flourish even in these testing times.
"We [want] to ensure they have access to finance as well as independent advice and help when times are tough"
The BBA publishes Libor, the rate of interest at which banks lend to each other, which has remained stubbornly high in recent weeks, stifling lending.
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