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Written question asked by Kirsty Blackman (Scottish National Party) on Tuesday, 20 July 2021, in the House of Commons. It was due for an answer on Monday, 6 September 2021 (named day). It was answered by John Glen (Conservative) on Monday, 6 September 2021 on behalf of the Treasury.

Business: Bank Services

Question

To ask the Chancellor of the Exchequer, what recent comparative assessment his Department has made of the (a) performance and (b) effectiveness of (i) UK business banking regulation and (ii) that of other OECD countries.

Answer

The government, along with regulators, are committed to ensuring that UK regulation promotes safe and sustainable financial services, while still allowing room for innovation and continually reviews its effectiveness.

It has long been the case in the UK that business lending is generally not subject to regulation – much like many other major economies such as; the US, Canada, and Australia. Ultimately, the government only looks to regulate where there is a clear case for doing so, in order to avoid putting additional costs on lenders that would ultimately lead to higher costs for business customers.

But of course, that does not mean – should things go wrong - that businesses do not have access to free, independent dispute resolution services. In fact, 99% of businesses have recourse to the Financial Ombudsman Service. And with the launch of the Business Banking Resolution Service in February this year, larger eligible SMEs also have somewhere independent to take their complaint.

Secondary information

Type
Written question
Reference
36658
Session
2021-22
Grouped for answer
Yes
Subjects
Bank services Business OECD countries Regulation
Link
View this Written question on www.parliament.uk