HSBC

[Campbell]

HSBC just reported a tidy profit. Should us HSBC business account holders be cheered with this news? and that subsequently they will have plenty of cash to lend.

 

[B&B Pig Man]

I'm leaving them this year!

Totally fed up with them!
Haven't seen our manager once in the last 4 years!

 

[Campbell]

Not seen mine [whoever he/she is] for a couple of years come to think it, surley that's a good sign, unless of course they are avoiding your advances?

 

[B&B Pig Man]

Just think it would be common curtesy to pay us a visit and say hello!

 

[Walterp]

Most banks are not using the Govt's 'funding for lending' scheme, and HSBC has the reputation in this (farming) region of not being interested in agriculture.

Think yourself lucky, perhaps, that they've not pulled any O/D facility that you may have with them....

 

[Rob Holmes]

We moved 18 mths ago, they are absolutely dreadful, totally lost the plot with agriculture,

Now moved to Yorkshire/Clydesdale bank, and extremely happy with them and their support

 

[Walterp]

OK, I didn't like to say so, but they ARE absolutely dreadful....

 

[IANTO]

OK, I didn't like to say so, but they ARE absolutely dreadful....

Agreed.

One of my friends is a Commercial Manager at HSBC, and over the last few years I have passed a few potential propositions to her "off the record", as unless someone is interested it is a waste of time and Clients Money to submit a fully documented proposition.

For every one, she said you would be wasting your time. It does not comply with Head Office Guidelines. Her honest assessment, was that HSBC like many of the other Banks did not wish to lend, only strengthen their balance sheets.

She has had enough, and has applied for early retirement. I feel sorry for her, she was a Good Bank Manager, and had an excellent track record, and was well liked by customers.

Customers are moving away in droves, and blame her, for something that is not within her control.

HSBC are not the only ones cutting back.

From tonights Sky News.

British lenders taking part in a Bank of England scheme to boost firms' and households' access to credit cut lending sharply in the last three months, official statistics have revealed.
The lower than expected Funding for Lending Scheme (FLS) figures have dampened hopes that the project could help revive economic growth.
The BoE announced the scheme jointly with the Government in June 2012, as a way to unblock a credit log-jam which some economists say is a big factor behind Britain's weak economic recovery.
Banks and building societies cut lending by a net £2.425bn between October and December.
The figure compares to an increase of around £1bn in the first months of the FLS's operation.
Total net lending by banks and building societies taking part in the scheme - which includes all major British lenders apart from HSBC - is now down by £1.502bn since June 30.
The bank said that the scheme's benefits will not be fully clear until later in 2013.
"I would not expect to see a return to rising aggregate quantities until we start getting data for 2013 at the earliest," the bank's Paul Fisher said.
Taxpayer-backed lenders Royal Bank of Scotland and Lloyds Banking Group saw lending fall, despite drawing money from the scheme.
Lloyds has drawn £3bn so far, but lending fell by £3.1bn last quarter, while RBS has taken £750m, but its lending still fell by £1.7bn.
Prime Minister David Cameron's official spokesman said that the Government and the BoE had always made clear that it would take some time before the impact of the Funding for Lending scheme was felt, and that it was not expected as early as the fourth quarter of 2012.
"I think the Bank of England at the time of the launch of the policy was clear that it would take some time for the impact of the policy to be fully felt," the spokesman said.
"The most recent figures for lending in the economy, for January - the first month of Q1 2013 (the first quarter of 2013) - show that lending to the economy increased in January.
"I think we are also seeing the impact of the Funding for Lending scheme through lower borrowing costs. I think we are seeing evidence of the policy having a clear impact."
But shadow chancellor Ed Balls said: "These are deeply disappointing figures. Net lending is actually down since the Funding for Lending scheme started and down by £2.4bn in the final three months of 2012.
"And the Bank of England's own figures show that net lending to businesses fell by £4.5bn in the last quarter."

Economic growth requires investment, and if Banks are not prepared to lend, UK PLC does not have a hope in hell.

Banks are answerable to their shareholders, and the powers that be in Banks, have a vested interest in securing their own positions.

As it appears on the evidence of the figures, that they are not prepared to lend to UK Businesses, I wonder if the writing is already on the Wall, and the UK is going down the tubes.

It appears as all UK Banks, have an International presence, that they believe it is more profitable, and safer to lend elsewhere.

In the European Union perhaps?

 

[Flossie]

Just think it would be common curtesy to pay us a visit and say hello!

No, if you haven't needed them in 4 years, don't panic about it It's common courtesy for grandchildren to visit their grandparents and say hello, not bloody bank managers-not that I'm old enough for grandchildren (but they'd better visit when I am )

 

[IANTO]

No, if you haven't needed them in 4 years, don't panic about it It's common courtesy for grandchildren to visit their grandparents and say hello, not bloody bank managers-not that I'm old enough for grandchildren (but they'd better visit when I am )

I hope Grumpy does not read this.
If he does I have no doubt he will volunteer to make sure you are a Grandmother. (Assuming of course that you have daughters.)

 

[Flossie]

I hope Grumpy does not read this.
If he does doubt he will volunteer to make sure you are a Grandmother. (Assuming of course that you have daughters.)

Of course he will read this, he is the all seeing eye...................and permanently on heat

 

[Cowabunga]

Isn't it true that the banks do have money to lend and are willing to lend? The difference between now and 15 years ago is that banks have tightened their lending criteria. A return to conservative banking that so many people claimed to be a 'good thing' compared to the easy and lax practices of the 25 years up to 2006 or so.

Along with this, of course, and mentioned by spokesmen today, is that businesses are more inclined to pay down debt rather than take on more. That could indeed be most prudent of both banks and businesses. Perhaps the time is just not right to borrow even though money is relatively cheap. The question is, can businesses make money from money in the medium term? Many must think not and many banks must think that more businesses are risky than do their managers. Possibly many businesses share that view.

 

[IANTO]

Of course he will read this, he is the all seeing eye...................and permanently on heat

A good old fashioned battery operated cattle probe, should keep him at bay.

Make sure it is on half power.

Full power would probably kill a Dwarf.

 

[Walterp]

Isn't it true that the banks do have money to lend and are willing to lend? The difference between now and 15 years ago is that banks have tightened their lending criteria. A return to conservative banking that so many people claimed to be a 'good thing' compared to the easy and lax practices of the 25 years up to 2006 or so.

Along with this, of course, and mentioned by spokesmen today, is that businesses are more inclined to pay down debt rather than take on more. That could indeed be most prudent of both banks and businesses. Perhaps the time is just not right to borrow even though money is relatively cheap. The question is, can businesses make money from money in the medium term? Many must think not and many banks must think that more businesses are risky than do their managers. Possibly many businesses share that view.

Many farmers still want to borrow capital, usually to expand their businesses by buying more land, or more dairy cows and sheds to put 'em in. They are, still, queuing up to borrow the money.

But the banks have, generally, stopped queuing up to lend it. They have, as the Duck says, altered their lending criteria - but what he doesn't add is that these alterations are so drastic that they amount, in many cases, to an outright refusal: basically, you need (a) a shed load of collateral, (b) a shed load of cash to contribute and (c) reasonably solid trading accounts.

Or, in the alternative, a business plan containing the magic words "I want to get to a 1,000 cows..."

In their move away from just examining a farmer's collateral, maybe the best way to describe this development is "the banks have now stopped being pawnbrokers..."

 

[GenuineRisk]

Well, speak as you find and we've just put the company with them, a mistake rectified from five years ago when I chose NatWest over them. So far they've been ultra efficient, dealing with same guy as five years ago, I have his tel no and email and I don't want to see them unless I need to for some reason or other.

 

[Cowabunga]

Many farmers still want to borrow capital, usually to expand their businesses by buying more land, or more dairy cows and sheds to put 'em in. They are, still, queuing up to borrow the money.

But the banks have, generally, stopped queuing up to lend it. They have, as the Duck says, altered their lending criteria - but what he doesn't add is that these alterations are so drastic that they amount, in many cases, to an outright refusal: basically, you need (a) a shed load of collateral, (b) a shed load of cash to contribute and (c) reasonably solid trading accounts.

Or, in the alternative, a business plan containing the magic words "I want to get to a 1,000 cows..."

In their move away from just examining a farmer's collateral, maybe the best way to describe this development is "the banks have now stopped being pawnbrokers..."

They have not stopped lending apart from some risky sectors like small building developments. However they have become 'prudent' and do require a good business case to be made and adequate security. Back to traditional banking. If some people get pee'd off because their request for a loan is refused, isn't that the natural consequence of 'prudent conservative banking'?

 

[Walterp]

They have not stopped lending apart from some risky sectors like small building developments. However they have become 'prudent' and do require a good business case to be made and adequate security. Back to traditional banking. If some people get pee'd off because their request for a loan is refused, isn't that the natural consequence of 'prudent conservative banking'?

Yes, but...

I'd suggest, cautiously, that present farm valuations are based on past credit conditions - so if banks no longer regard themselves as 'pawnbrokers', then in many cases they will not lend (or not lend as much) as they might have done previously. Leading to a dearth of buyers, leading to over-valuations in many cases.

This, I think, explains why land being bought by dairy farms remains very expensive (their banks are still keen to lend) whilst other land struggles or fails to sell at all. I believe that this is a new development, 'cos I've never seen this before; the main effects are: (a) banks are funding a huge dairy expansion programme, often competing headlong with each other to out-bid one other's customers and (b) selling agents target the market, not the land, because finding the right mug (oops...sorry, buyer) is more important than it has ever been before and (c) areas outside the charmed circles of arable or dairy expansionism are fast becoming a second-tier market.

I've only been in the market for 25 years, and I appreciate that many members will have much longer memories than me, so it's just my tentative view - it's all fairly recent stuff, so it's still being played out, isn't it?