140k SMEs debanked is ‘unfair’, warn MPs

MPs on the Treasury Committee has ‘condemned unfair de-banking of legitimate businesses’ and are highly critical of ‘substandard processes’ taken by banks

In the last year more than 140,000 SMEs have been debanked, most of the time with no warning. The committee is calling for the Financial Conduct Authority (FCA) to force banks to be more transparent about the process they go through when de-banking a company.

In a report on SME banking, the Committee called for an overhaul of the current system, saying that the FCA should step in to take action.

The report gave a breakdown of closures of SME accounts by banks, led by Barclays (78,750), HSBC (25,395) and NatWest (20,400).

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