Bank chief: We want to lend more to companies
But Sullivan says there will be no ‘free-for-all’
ROYAL Bank of Scotland’s head of corporate banking says he wants to expand his balance sheet by lending to companies capable of paying him back.
Chris Sullivan, chief executive officer of the 82% taxpayer-owned RBS’S corporate banking business, said he would “love to have a situation” where he had so much demand for lending from businesses that he could not satisfy it with the capital he had.
Mr Sullivan’s comments, in an exclusive interview with The Herald, come against the backdrop of continuing heated debate between the wider banking sector and businesses over lending.
Parts of the business community continue to argue that they are unable to secure funding at all, or at an acceptable price, from the banks.
The banks, however, highlight a lack of demand for borrowing and a determination by some businesses to pay down their debt.
While declaring that no-one would thank him if he said “let’s have a free-for-all” in terms of lending, Mr Sullivan told The Herald: “My aim is to be absolutely responsible, to help people to invest wisely.
“I have no constraints on me to do that. I have got capital.
“That capital will be used in the UK customers.”
Mr Sullivan, whose corporate banking remit covers everything from start-ups and small businesses through to the biggest companies, said: “I would love to have a situation where I had so much demand I couldn’t satisfy it with the capital.”
He made it plain that he was
for our business bothered about the net movement in lending, taking into account repayments as well as new advances.
However, he is not in favour of targets based on net lending because of an inability to control how much businesses choose to repay.
And he declared that businesses had in recent times been repaying about 50% more than they were contractually obliged to do.
There has been much debate over the fact that Government-set targets for lending to both businesses and individuals are based on gross figures, as opposed to the net movement. Questions have been asked over the usefulness of such gross targets.
Mr Sullivan said: “I am in a
Picture: Mark Mainz business too. I want to grow. Having a balance sheet that is not growing is not part of my plan for the next four years.
“I have more money to lend but I need to find customers (to) borrow that can pay me back.”
He added: “I am interested in gross lending. I am interested in