Stephen Kerr
Main Page: Stephen Kerr (Conservative - Stirling)Department Debates - View all Stephen Kerr's debates with the HM Treasury
Clydesdale Bank and SMEs
Stephen Kerr Excerpts(5 years, 7 months ago)
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John Glen
I thank the hon. Lady for her comments. There are two things there, and one is the adequacy of the voluntary mechanism. To be fair, it is unclear how it will play out, because it has only just been established. I see from my engagement with the chief executives and chairmen of the banks a massive desire to ensure that this has teeth and can deliver. This is not about the Government saving face. It is about ensuring that this process is effective. I will have deep engagement with and take a close interest in this process, because it must be effective and thorough in its examination of these cases.
I take the wider point that the hon. Lady makes about banking culture. A lot has changed in the last 10 years, and many of these cases arose before that. We now have a very different regulatory environment, with the Prudential Regulation Authority and the FCA, which has changed things considerably, but I will reflect carefully on her comments.
Stephen Kerr (Stirling) (Con)
I congratulate the hon. Member for Lanark and Hamilton East (Angela Crawley) on securing this urgent question. I had the opportunity recently to meet her constituent John Guidi, and I express my strongest concern for his welfare. Does the Minister accept that just one such example makes the case for introducing a financial services tribunal, to allow business owners to challenge financial institutions and have confidence that they will always be treated on the basis of fair play and justice?
John Glen
I have extreme sympathy for everyone who has had the sort of experience that this constituent has had, but I do not think it is right for any Government to make policy on the basis of one case. It is incumbent on Government to set out a framework and a policy that will deliver real answers to complex questions. I do not accept that the regulation of bank lending would be a good step forward. I understand the argument that it would give certainty to small businesses, but my view is that it would discourage a lot of lending, because there would not be the same appetite for lending if that regulation was as onerous as it would likely be.