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Failures in the banking sector

Published Tuesday, July 10, 2018

This Paper is background for a debate on possible future reforms to the way that small firms can seek redress in cases of poor practice against them by their banks.

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This Westminster Hall debate is the latest in a series of debates linked to the treatment of companies referred to the Global Restructuring Group - a division of the Royal Bank of Scotland. The GRG dealt with companies in financial difficulty.

Many of these companies felt they were treated badly and their businesses suffered, often fatal consequneces, at the hands of the bank which, they argued, had conflicting incentives.

There have been several enquiries into what happened, and the Report of the FCA's 'skilled person' was published by the Treasury Committee in February 2018.  It included several possible remedies.  It is likely that some of these will form part of the debate.

Commons Debate packs CDP-2018-0173

Author: Tim Edmonds

Topics: Companies, Financial institutions, Insolvency, Small businesses

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