The regulator is acting following separate reports from Sir Andrew Large into lending practices at the Royal Bank of Scotland (RBS) and Dr Lawrence Tomlinson into banks’ treatment of customers in financial difficulty.
Commercial lending remains unregulated but the allegations were sufficiently serious to raise concerns the bank may have failed to Treat Customers Fairly, said the FCA.
“If substantiated, such allegations may also indicate wider concerns in relation to governance and culture within RBS. The FCA expects firms to act with integrity across all of their activities,” it said.
If the findings from the review reveal issues which come within the FCA’s remit, the FCA will consider further regulatory measures.
Separately, the regulator plans to write to all other relevant banks to confirm they are satisfied they do not engage in any of the poor practices alleged in the reports.
Clive Adamson, director of supervision at the FCA, said: “These allegations, if proved, raise serious concerns about how banks treat their customers. An SME’s relationship with its bank is essential for any business to have a chance to succeed, and claims like the ones made threaten to undermine that. We expect all firms to act with integrity and put customers at the heart of their business.”
