Commenting on the substantial shake-up at RBS and Lloyds Banking Group announced today, David Frost, Director General of the British Chambers of Commerce (BCC), said:

“If implemented properly, these plans have the potential to increase the availability of finance to business.

“The new banks must be well capitalised, and there will have to be changes to the current situation, which leads the banks to exaggerate risks associated with lending to smaller companies. It is vital that what emerges from this shake-up is a competitive system that offers business real choice.

“In the short-term, we still need to persuade the MPC and the Government to implement more policies that will increase the availability of finance to small and medium-sized firms.

“The Government, European Commission and the banks must never lose sight of one core principle: without access to finance for viable businesses, the UK economy will pay a serious long-term price.”