Clearing Banks (Hansard, 15 May 1992)

§ Mr. Caborn
To ask the President of the Board of Trade what assessment he has made of the effect on small businesses of the number of clearing banks.

§ Mr. Leigh
The President of the Board of Trade will consider a possible offer from Lloyds bank for Midland bank in the light of considered advice from the Director General of Fair Trading. This advice will include an assessment of all aspects of the merger affecting the public interest, including the implications for small businesses.

§ Mr. Caborn
To ask the President of the Board of Trade if he will make a statement on the services provided by the clearing banks for small businesses.

§ Mr. Leigh
In recent years, banks have played an important part in meeting the financial needs of small businesses and have introduced a wide range of new products and services for their small business customers. Details of those products and services are set out in the codes of practice for small business customers which all the major banks have now produced. Clearing banks meet the vast majority of small businesses' needs for finance, currently providing over £40 billion of loans to small companies.

§ Mr. Devlin
To ask the President of the Board of Trade what assessment he has made of the implications for individual banking customers of a reduction in the number of clearing banks.

§ Mr. Neil Hamilton
The President of the Board of Trade and I will consider the possible offer by Lloyds bank for Midland bank in the light of considered advice from the Director General of Fair Trading. This advice will include an assessment of all aspects of the merger affecting the public interest including the implications for individual customers.