Recession tests bank relations
Recession tests bank relations
0 Comments | Hull Daily Mail, Jul 28, 2010
FINANCE: Tighter credit conditions have tested the relationship between banks and companies and put pressure on finance directors, according a leading banker.
Neil Williams, regional director of corporate banking for Santander, who leads a team of 27 working from offices in Hull, Sheffield or Leeds, said fewer banks in the market and constraints on lending had led to new pressures on FDs.
He spoke on behalf of Santander which is a co-sponsor of the 2010 Yorkshire Finance Director Of The Year Awards with law firm Hammonds, Ernst and Young and consultants Sewell Moorhouse.
Mr Williams said: “When you come into a recession that is when relationship banking is tested.
“Banks face a choice to continue to support their clients or look to generate more income.”
The increased focus on the relationship between companies and their financial backers has put new pressures on finance directors.
Mr Williams said: “A number of other banks have left the marketplace or not lending as much as they were previously.
“As a result FDs have had to be a bit better in terms of negotiation with banks because the volume of money they are lending makes it harder to get the financing they need.”
For more information about the Yorkshire FD awards email Lucinda Wood at lucinda.wood@sewellm.co.uk.