Since the credit crunch, several banks have come within days of going under, and have been rescued by the British public – millions of pounds was injected by UK taxpayers to rescue the likes of Royal Bank of Scotland.
With this in mind, you’d think that the Banks would be grateful, however, the truth is that the past 5 years has seen a string of banking scandals.
Below are 5 reasons for businesses in the UK to doubt and distrust Banks:
- Libor Manipulation – scandal on the 27th June 2012
- Interest rate swaps – scandal on the 29th June 2012
- Killing businesses – 4,115 companies in England and Wales went into compulsory liquidation or creditors’ voluntary liquidation. That’s an average of 45 businesses failing each day.
- Lending Less – just £1 in £400 of bank loans goes to the firms that are the very backbone of British business.
- Rising Rates and Fees – banks make fatter profits by borrowing cheaply and lending at far higher rates to credit-starved companies.
To summarize, banks owe their entire existence to the British public and UK businesses – it is about time they started treating us more fairly!