High level Principles on feedback given by banks on declined SME credit applications
The majority of SME applications for credit are successful. In fact, close to 80 percent of all requests are approved. However, higher rates of growth can be achieved by helping those SMEs which have not been successful understand better what they can do to obtain financing. The EBF actively supports the initiative of strengthening feedback provided to SMEs when their credit applications are not successful, especially in countries were national initiatives to facilitate this dialogue have not yet been fully developed.
Many valuable initiatives for feedback for SMEs already exist at national levels all across Europe. The current initiative builds on these and aims to close the gap in those areas where there is a need.”
Both banks and new entrants in financial services technology are actively engaged in an industry-wide effort to develop common processes and standards. The forum for this cooperation is the Working Group on Payment Initiation Services of the Euro Retail Payments Board, created by the European Central Bank.