LENDERS PROVIDE OVER £4 BILLION TO SMES THROUGH COVID-19 LOAN SCHEME

The banking and finance sector has provided over £4.1 billion to SMEs so far through the Coronavirus Business Interruption Loan (CBIL) scheme, UK Finance reveals today, as part of a broad package of support to help businesses through these tough times.

Over £1.33 billion of loans have been approved in the week from 21 April to 28 April 2020. The number of loans provided through the scheme has increased by 8,638 over the same period to a total of 25,262, a rise of over 50 per cent.

The banking and finance sector is providing a range of support to SMEs to ensure they can receive the help most appropriate to their needs, including capital repayment holidays, overdrafts, working capital extensions and asset-based finance.

Stephen Jones, Chief Executive of UK Finance, said:

?The banking and finance sector recognises the role we must play in getting the country through these tough times, and staff are working incredibly hard to get money to those viable businesses that need it. More than £4 billion has been delivered to over 25,000 businesses so far through the CBIL scheme, as part of a broad package of support for SMEs including capital repayment holidays, extended overdrafts and asset-based finance.

?The changes to the scheme announced by the Chancellor this week will enable lenders to streamline their application processes and help even more businesses access the support they need. This extensive support will be complemented by the new Bounce Back Loans scheme targeted at smaller businesses, which lenders are now working at pace to get up and running from Monday.?

SOCIAL MEDIA COMPANIES URGED TO TAKE STRONGER ACTION TO TACKLE FRAUD

Social media companies are not doing enough to prevent criminals committing fraud through their platforms, according to an investigation by consumer organisation Which? (BBC News). The research uncovered 50 profiles, pages and groups across major social media platforms with clear evidence of criminal activity, including selling stolen identities and credit card details.

Which? Money editor Jenny Ross said: "It's astonishing that social media sites make it so easy for criminals to trade people's personal and financial information, particularly as fraud is such a prevalent crime that can have devastating consequences." She called on social media platforms to take stronger action against fraud and "work with the financial industry and police to address serious flaws with their platforms" (Press Association).

Responding to the investigation, Katy Worobec, Managing Director of Economic Crime at UK Finance, said:

?Criminal gangs are continuing to exploit social media platforms to commit fraud, whether it's selling stolen identity and card data, recruiting ?money mules? or targeting the public with coronavirus scams.

?Banks are taking action on all fronts to protect customers from fraud, including working closely with law enforcement to identify and take down fraudulent activity on social media where possible.

?But we cannot win this fight alone. Every part of society including social media companies must play their part in protecting innocent victims and preventing money getting into the hands of criminals.?

NEWS IN BRIEF

The Evening Standard (online only) reports that banks are in talks with regulators and the Treasury over the new Bounce Back Loan scheme, to get reassurances that the simplified application process will not put them at risk of breaching current regulations.

The Financial Conduct Authority (FCA) has extended the deadline for ending the use of the Libor interest rate benchmark in new loans until the end of March 2021. UK Finance said ?it is vital that the banking and finance industry ensures a smooth flow of credit to the real economy? as the Covid-19 crisis continues (Reuters).

The government is set to issue detailed guidance on how Britain can safely go back to work once the lockdown is eased, with a series of papers setting out how safe working can be achieved in different sectors, according to the Financial Times (£, p1).

The Competition and Markets Authority (CMA) has launched an investigation into concerns about firms' policies on refunds and cancellations during the Covid-19 pandemic (The Guardian, online only).

Car production in the UK fell by almost 40 per cent in March to its lowest level in a decade, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT) (Telegraph, B3, print only).

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