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Bank of Scotland: Flexible loans needed to win business
27/04/2007
Banks need to offer "appropriately flexible and/or priced" loans in order to win business in a competitive market, an expert suggests.
Gavin Halliday, head of risk at Bank of Scotland, also states that there are currently lots of people looking for business loans.
Indeed, he indicates that the market for business loans in England is buoyant at present and it would take a sustained period of high interest rates for things to change.
Commenting on the current economic climate in the country, Mr Halliday remarks: "We've kept a very close eye on what's happening with personal insolvencies and bankruptcies because that obviously affects all the lending that's non-limited.
"But given the competition we are facing in England and the margins, [what] our competitors are charging … the interest rate hikes of late don't appear to be feeding through yet."
The interest rate currently stands at 5.25 per cent, but a number of leading economists are predicting further increases in the coming months.
Gavin Halliday, head of risk at Bank of Scotland, also states that there are currently lots of people looking for business loans.
Indeed, he indicates that the market for business loans in England is buoyant at present and it would take a sustained period of high interest rates for things to change.
Commenting on the current economic climate in the country, Mr Halliday remarks: "We've kept a very close eye on what's happening with personal insolvencies and bankruptcies because that obviously affects all the lending that's non-limited.
"But given the competition we are facing in England and the margins, [what] our competitors are charging … the interest rate hikes of late don't appear to be feeding through yet."
The interest rate currently stands at 5.25 per cent, but a number of leading economists are predicting further increases in the coming months.