A bank chief in the North today admitted customers struggling to cope with the credit crisis had not always been fairly treated.
During questioning at Stormont, Finance Committee member Dawn Purvis accused bankers of allowing their anxiety over the economic climate to affect lending decisions on small businesses.
Ulster Bank chief executive of retail markets Mike Bamber said the criticism was not justified and the criteria was the same now as it was before the financial crisis.
However, he said: “There is always two sides to every story and sometimes we may not have acted fairly and it is important for us to admit that.
The Ulster Bank, First Trust, Northern, and Bank of Ireland attended today’s meeting.
Ms Purvis, the leader of the Progressive Unionist Party, raised the predicament facing small businesses. “They need money, they need cash flow and I don’t see it coming. All I see is a bundle of bad nerves being passed on to customers,” she said.
Bank margins on financial products have risen amid financial uncertainty, the committee heard. Profits have increased on new deals despite stiff competition between providers, the British Bankers’ Association (BBA) said.
BBA executive director Eric Leenders said the industry was grappling with a global problem but added the aspiration was to treat customers fairly.
DUP MLA Ian Paisley Jr told the bankers the public perception was that they were villains of the credit crunch.
“Customers now are seeing the squeeze, they are being told by banks: ‘We can’t lend you any more, we can’t risk any more, you are going to have to make people redundant’ even though they are good solid businesses.”
The committee is examining the role of local banks in the economic downturn.
PA