Ever since the icy grip of the recession took hold of the UK back in 2007, businesses and the general public have been quick to point the finger of blame squarely at the banks.
The low opinion people now have of banks and the executives who run them has led to endless tirades against bonuses, lending habits and everything in between. But, following a thorough review by law firm Clifford Chance, RBS has been cleared of allegations of wrongdoings against Britain’s small businesses.
In November 2013, Lawrence Tomlinson was the latest person to voice criticism of high street banks; the businessman claimed that RBS’ Global Restructuring Group (GRG) had been needlessly putting small firms into financial distress in a bid to boost profit from their insolvencies.
Tomlinson said that by moving businesses into GRG, RBS had been generating additional fees and increasing its margins as well as allowing its property division, West Register, to buy assets at a knockdown price. It was an extremely serious allegation that exacerbated the already damaged view people had of the banking industry.
An independent review by Clifford Chance has sullied these claims, clearing RBS’ name in the process. The law firm stated: “The bank has no financial incentive to unnecessarily bring about the customer’s insolvency by imposing unaffordable interest and fees. We found no examples where the bank deliberately charged interest and fees which it believed or knew that the customer could not afford.”
However, in the six months that have elapsed between the accusations and publishing of the report, the trust between the bank and its business customers has been dented yet deeper.
With investigations still pending into the lending habits of high street banks towards small businesses, faith is still to be fully restored that the industry is acting in the interests of its customers rather than its own. Indeed, it doesn't help that in the same week as RBS received this piece of positive news, it still dominates the headlines for the wrong reasons as the Treasury has blocked its plans for 200 per cent bonuses and it has also been fined £460,000 by Hong Kong regulators for illegal emerging market trades. 
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