Finance Minister criticises against Banks

The NI finance minister has criticised the local banks, saying they must increase lending to viable local businesses at reasonable terms.

Sammy Wilson was speaking after a meeting of a Stormont group which brings together representatives from the local financial sector.

He said he had told the bankers that without "reasonable lending practices" the recession will be prolonged.

He said he had heard reports of banks refusing to lend to small firms.

He added that he had "impressed upon the banks" their responsibilities in this area.

Mr Wilson also expressed concern over the relatively low take up of UK government and European Investment Bank schemes designed to increase business lending.

'Bad bank'

He said the schemes are mainly designed to help the type of small and medium local business which are currently struggling through the current economic downturn.

He has asked the local banks to improve the promotion of these initiatives

Mr Wilson said he had also used the meeting to update the group on the latest developments relating to the Irish government's proposed "bad bank", the National Asset Management Agency (Nama).

Nama is expected to take control of about 4.8bn euros of property-related assets in Northern Ireland, as part of the scheme to remove toxic loans from the balance sheets of Dublin-based banks.

Mr Wilson told members that Northern Ireland would have a direct input to the Nama process.

Source: bbc.co.uk