More NewsBanks Accused Of Pressure Tactics

Banks Accused Of Pressure Tactics

Large companies are increasingly likely to be subject to pressure from commercial banks, according to a survey by the Association for Financial Professionals (AFP). Fifty-six per cent of companies with annual revenues greater than $1 billion reported that a commercial bank denied credit or changed the terms of credit after the company did not award other fee-based business, such as investment banking or strategic advisory services. Furthermore, three out of five large companies reported that the pressure to award additional business has increased over the last year. In August 2002, responding to a congressional inquiry, the Federal Reserve and the Office of the Comptroller of the Currency stated that they had not identified any prohibited tying activity by commercial banks. They also indicated that they are undertaking further review. ‘Our members have consistently expressed a concern about their company’s access to credit being contingent upon the purchase of additional services,’ said AFP’s President and CEO Jim Kaitz. ‘This survey demonstrates the need for further investigation into this matter.’

Related Articles

Infosys Finacle to power Santander UK’s international cash management system

More News Infosys Finacle to power Santander UK’s international cash management system

4w The Global Treasurer
Preparing for GDPR? Here’s four things to consider

More News Preparing for GDPR? Here’s four things to consider

4m Elliott Wiseman
Cash flow in focus for investors

Cash Management Cash flow in focus for investors

5m Conor Deegan
Treasury TV: Karen Pugsley, Domino's Pizza Group

More News Treasury TV: Karen Pugsley, Domino's Pizza Group

5m Victoria Beckett
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

5m Victoria Beckett
Treasury TV: Tim de Knegt, The Port of Rotterdam

10 Minutes With The Treasury Treasury TV: Tim de Knegt, The Port of Rotterdam

6m Victoria Beckett
Banks are selling clients short with short dated cash deposit U-turns

Banking Banks are selling clients short with short dated cash deposit U-turns

6m Victoria Beckett
What does sterling’s Brexit boost mean for UK manufacturers?

More News What does sterling’s Brexit boost mean for UK manufacturers?

6m Tasja Botha