BBA slams IoD for "dodgy statistics"
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The British Bankers’ Association has hit out at the Institute of Directors for using “dodgy statistics” and for failing to engage with the association.
Speaking at the BBA’s International Banking Conference today, chief executive Angela Knight attacked the IoD for a press release it issued on bank lending to businesses.
She said: “Yesterday, the BBA issued a fact sheet on how banks set the price for loans to small business. It is particularly designed to show what makes up the cost of the loan and the accompanying press release includes explicit support from a number organisations representing industry – the borrowers if you like - including representatives of small business.
“What a pity the Institute of Directors decided instead on a spoiler with dodgy statistics and chose again not to engage with the BBA.”
The IoD released a survey today, which showed that one in three firms that applied for finance in the time period 1 January 2010 - June 2010 were declined by their bank.
It said that there is evidence that lending criteria have become more restrictive with regard to the amount of security requested by banks.
But Knight said that the “blame game” had gone on far too long and called for a more constructive approach.
She said: “The banks understand their societal responsibilities and are committed to constructive and productive relationships as the right way forward.”
An IoD spokesman says: “We are merely representing the views of our members and the feedback that they give us.”
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Readers' comments (1)
BritishBankers | 13 Jul 2010 4:38 pm
British Bankers' Association here. What annoyed us about the IoD release was that it was statistically invalid, effectively using degraded data - a sample of a sample - to reach its conclusion.
The IoD has every right to challenge banks' activities, as has everyone. But to distort figures to suggest that one-third of firms are being denied credit, when only 13 per cent of their respondents actually said this, distorts data, and trivialises an important debate.
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