Don’t get de-banked!

15th May 2024

Why do businesses get de-banked?


MP’s on the Treasury Committee have recently looked at an issue that has been creeping up on some SME’s recently and causing real problems – where your bank shuts your account without your instruction and without warning.


The committee have discovered that this has occurred 130,000 times over the last 12 months:
  • Barclays           78,750
  • HSBC                25,395
  • NatWest         20,400
  • Lloyds                  8,115
  • Santander          2,143
  • Metro                  5,051
  • TSB                     1,443


Banks cited the main reasons for this as:
  • Customers failure to comply with anti-money laundering ‘know your client’ information requests
  • Changed risk appetite (based on geography or nature of the business)
  • Trying to avoid reputational risk


The Treasury Committee are now recommending to the FCA that banks be forced to be more transparent about this.


Disclaimer - All information in this post was correct at time of writing.
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