New bank regulations could decrease lending further

New rules and regulations imposed on banks are making it more difficult for banks to lend, according to the chairman of the UK’s Treasury Committee, Andrew Tyrie.

As a result of these suspicions, it was disclosed that Mr Tyrie has written to the Bank of England and the Financial Services Authority (FSA) asking them to investigate how new regulations have impacted lending.

Together with the continuing eurozone crisis, Tyrie warned that banks are finding it increasingly hard to raise more funding, thus resulting in lesser amounts available for lending and potentially damaging the economic recovery.

One of the new rules said to be impacting on lending is the Basel 3 agreement, which forces banks to hold on to more capital. Although Basel 3 doesn’t come into place until 2015, investors have increased pressure on banks to implement new rules well in time for 2015.

Emergency funding provided to the banks during the financial crisis has also been fully withdrawn, as the banks’ struggle to locate cash for lending purposes looks set to continue for the foreseeable future.

Invoice finance as an alternative

As it becomes more and more difficult to gain access to bank capital, have you consider other sources for external finance?

Invoice finance solutions, which include invoice factoring and invoice discounting, are increasingly popular alternatives, which can release large amounts of cash from your unpaid invoices.

Why not get in contact with SBF today to see if we can offer you a financial alternative to bank funding.