eBay takes Big 4 lenders to task

J.H. | ShareCast | 15 Nov, 2010 13:15 - Updated: 14:04 | | |

Santander

Online auction site eBay has joined the chorus of organisations grumbling about a lack of lending to small businesses on the part of banks.

The web site’s Online Business Index, a bi-annual report into the attitudes and performance of hundreds of online businesses operating on eBay’s UK site, indicated that the so-called Big Four banks – Barclays, HSBC, Lloyds Banking and Royal Bank of Scotland (RBS) – are almost twice as likely to refuse to lend to online businesses that use eBay than Santander.

RBS (including National Westminster Bank) is the most likely of the Big Four to refuse finance, the survey showed, with 37% of respondents saying they had been refused financing by the part-nationalised lender.

Even the best of the Big Four, Barclays, had a refusal rate of 32%, as against 19% for Santander, the Spanish bank that recently rebadged former building society brands such as Abbey, Alliance & Leicester and Bradford & Bingley to the parent company’s name.

The report appeared to touch a nerve with the British Bankers Association (BBA), the trade body of the clearing banks. The BBA said that eBay’s numbers did not tally with “several independent surveys” which suggest a refusal rate in the mid-teens.

The majority of respondents to eBay’s survey said they had seen little in the way of increased levels of helpfulness from the banks. Lloyds fared particularly badly on this measure, with 58% of the banks’ customers who completed the survey saying the bank had failed to become more helpful. RBS’s customers were split 50/50 on the issue while once again Santander topped the poll, with just 48% of respondents saying it had become no more helpful.

More news

05:20 China HSBC 'flash' manufacturing PMI edges higher to 50.4 in October

22 Oct US close: Markets slide as crude price plummets

US stocks were largely unchanged on Wednesday, as the price of the crude of fell sharply.

22 Oct Front month Brent crude futures down 1.8% at $84.67 per barrel on ICE

22 Oct Lloyds to cut 9,000 jobs over next three years

Lloyds Banking Group is set announce plans to cut 9,000 jobs over the next three years.

22 Oct Tesco mulling appointment of new Chairman - FT

22 Oct GSK to deliver first Ebola vaccine by the end of 2014

British drugmaker Glaxosmithkline (GSK) announced on Wednesday that it is likely to have the world's first vaccine against Ebola by the end of 2014.

22 Oct Thursday preview: Showtime for Tesco as struggling retailer unveils H1 results

Tesco will be the company on most traders' watchlists on Thursday as the supermarket unveils its highly-anticipated half-year results.

22 Oct Metro Bank losses narrow in Q3

Metro Bank posted a £9.4m loss over the third quarter, a slight reduction from the £9.9m loss it had registered in the previous three months.

22 Oct Met Police arrests two people on suspicion of terrorism

The Metropolitan Police has confirmed it has arrested two people, including a woman suspected of "preparation of terrorist acts".

22 Oct Market overview: Admiral leads gains as market edges higher

1630: Stocks edged higher, with gains on the top flight index led by Admiral on the heels of favourable data out of AA. GlaxoSmithKline also outperformed following its latest quarterly figures. Grocers did worst ahead of tomorrow's results from Tesco. As expected the MPC kept Bank Rate unchanged at its 8 October meeting by a majority of 7 votes to 2, the minutes from that gathering revealed, although the tone of the minuets was distinctly more dovish. FTSE 100 up 27 to 6,400.

Advertising

HIGHLIGHTS

MPC minutes emphasise lack of inflationary pressures

As anticipated , Carney maintained his majority of 7-2 in favour of steady policy.

VIDEOS

EUR/USD: continues its clearly bearish trend
REGISTER NOW!