The attitude of the "enormous institutions" currently in control of the majority of the small
business banking market will determine Scotland's economic recovery, according to the government's latest research.
It also highlights that firms in the country continue to face challenges in accessing the finance they need to grow their enterprises. Though fewer companies are being rejected outright for finance deals by their
business banking providers, issues persist with the cost of loans.
"When we first published this survey last June it demonstrated the problems being faced by businesses applying for finance deals from their banks," remarked finance secretary John Swinney.
"It is incumbent upon banks, particularly given the vast scale of public
investment they have received, to ensure that the signs of improvement are continued and deliver real benefits to viable small businesses."
Colin Borland from the Federation of Small Businesses added: "Scotland's economic recovery hinges on the attitude of the enormous institutions which now control the vast majority of the small
business banking market."
Representatives for the Royal Bank of Scotland, in response to the survey, commented that its
business banking commitments include a cap on loan and overdraft arrangement fees and two years' free
business banking for start-ups.
