UK govt implements business banking changes

1 August 2011

Small businesses operating in the UK may find it easier to access finance from banks following the implementation of new European regulatory changes.

Mark Hoban, financial secretary to the Treasury, has today (1 August) unveiled two amendments to the EU Prospectus Directive that have been brought in 12 months ahead of schedule in order to boost the fluidity of relationships between companies and financiers.

Mr Hoban explained the measure is demonstrative of the government's commitment to stimulating growth among the country's smaller organisations in the aftermath of the global economic downturn.

These alterations will come into effect immediately and mean that small and medium-sized enterprizes will now be able to raise equity finance of as much as €5 billion ($£7.1 billion).

The official commented: "Reducing the regulatory burdens faced by business is vital in making the UK the best place in Europe to start, finance and grow a company."

Recently, the British Bankers' Association revealed that the level of corporate lending in the UK fell by £2.5 billion in June.

By Asim Shah

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