SMEs 'to call in insolvency solicitors'

Published on 26 May 2010 under category: legal

Small to medium-sized enterprises (SMEs) that are considering calling in insolvency solicitors could benefit from a new government review to reform banking practices.

The Office of Fair Trade (OFT) has announced the review which will aim to introduce more competition into the banking sector.

It could result in more banks on the high street, giving consumers more choice.

The reforms are also aimed at small businesses.

Criticism has been levelled at banks for failing to lend to small firms, which may have ended up calling in insolvency solicitors because of cash-flow problems.

The former government proposed the creation of a Small Businesses Adjudication Panel, to address grievances from small to medium-sized firms that have been refused credit.

Clive Maxwell, senior director for services at the OFT, said: "The OFT is committed to encouraging competition within retail banking that benefits consumers through cheaper and better products or services.

"We have recently seen some new players enter retail banking and we want to understand whether there are any hurdles to this or to the expansion of smaller banks."

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.