12 January 2010
Discussion paper on developing non-bank lending channels for UK businesses
HM Treasury has released a discussion document on developing non-bank sources of finance for UK businesses. The document seeks views on the barriers to more diverse financing for firms with the intention to introduce proposals for reform later in the year.
The Government has taken a number of steps to support responsible lending, to ensure that the supply of credit meets recovering demand from creditworthy businesses. This discussion paper looks at non-bank lending channels, and explores the issues and options firms face in obtaining debt finance from non-bank lenders.
UK firms have historically relied largely on banks for lending. While non-bank channels play a role in the financing of UK corporates, it is less so than in the US. Developing non-bank lending channels would help to improve the future resilience of the economy in the face of financial shocks, by providing an accessible alternative source of credit for businesses.
HM Treasury, working closely with the Bank of England and other stakeholders, is exploring the different factors that could impact access to non-bank lending channels. In particular, we will focus on:
- the credit assessment and monitoring process
- the role of corporate transparency
- transparency in the pricing of bank loans
- factors underpinning UK investor preferences
- loan and bond market infrastructure.
The Treasury is seeking feedback from interested parties, particularly the investor and business communities including: investors that have recently invested in or foresee themselves investing in UK corporate debt; and businesses that currently seek or who could potentially seek non-bank finance in the future.
Responses and enquiries
If you wish to respond to issues raised in this discussion paper or raise an enquiry about the scope of the discussion, please email: email@example.com
Telephone enquiries: Richard Holmwood on 020 7270 5884 or Thomas Hemingway on 020 7270 6097
Comments are invited by 14th February 2010.
The releases are available in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website. For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page.
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