FCA Consults On Rules for Banks' #SME Loan Referrals and Credit Data

The Financial Conduct Authority is consulting on rules relating to banks' obligations to release information about credit performance to credit reference agencies; and the referral of their rejected small business loan applications to 'designated finance platforms'. 

The proposals are in Chapter 6 of the FCA's current quarterly consultation.

The FCA will have a limited supervisory and enforcement role in relation to these obligations.

The consultation ends on 5 August 2015.

Big Day For Providers Of #AlternativeFinance To #SMEs

This morning, the British Business Bank began the process of creating a market for small business loan applications that the banks decline to fund, as well as opening up the banks' credit data to improve credit scoring for small business borrowers. 

Specifically, the BBB has called for expressions of interest from firms wishing to become either a designated finance platform, to whom banks must offer to refer any small businesses whose loan applications are rejected.

In addition, the BBB is seeking information from credit reference agencies that would like to receive credit data held by banks on small businesses to increase the reliability of SME credit scoring for non-bank lenders.