Small businesses to get bank code

THE British Bankers' Association is to publish a new code aimed at fostering better relationships between banks and small-business customers. It comes as banks and businesses await the Government's conclusions on the Competition Commission's investigation of small-business banking.

The BBA code, effective from the end of this month, is intended to help firms understand bank charges, products and services. Issues such as account switching will also be covered and the code will set out bank best practice.

The document has been created after consultation not just with the banking industry but also with the Chambers of Commerce, the Confederation of British Industry and the Federation of Small Businesses.

Any institution felt to be breaking the letter or spirit of the code will be named and shamed by the Banking Code Standards Board, set up three years ago as an independent watchdog. The BCSB has named various lenders for failing to comply with the code for personal customers, launched 11 years ago.

A booklet of some 30 pages will be available at bank branches and on the BBA website.

Trade Secretary Patricia Hewitt received the Competition Commission's views on small-business banking last October but the Department of Trade is still reviewing the report.