Banks 'asking customers to leave' to hit Government targets
Originally posted by 5corpio
High street banks are being accused of asking perfectly sound small businesses to leave them so they can free up capital to take on new customers to meet the Government's small business banking targets.

Philip Monks, the former Barclays banker who is now chief executive of start-up small business and residential mortgage lender Aldermore, has made the claim in an interview with The Telegraph.

He said: “Banks are turning around to very bankable customers and saying: 'Would you mind leaving us so we can free up space to take on business from new customers so we can prove we’re lending to new businesses?’ There’s a churn going on in the marketplace.”

In addition, he claims to have anecdotal evidence of SME owners who asked their bank relationship managers for loans to expand only to be met by a “sucking of teeth”.

“No formal application has been made but no SME business person has time to waste in producing a detailed business case for a bank if the relationship manager is saying, 'Sorry, it’s not going to get through’ – so it doesn’t hit their

Read more on this story: Banks 'asking customers to leave' to hit Government targets - Telegraph