The Irish Small and Medium Enterprises Assocation (ISME) has criticised the failure by bank representative groups to agree on a European Code of Conduct between banks and small- to medium-sized enterprises.
ISME has called on the European Commission to introduce legislation compelling banks to establish and implement the code. The association was seeking an agreement that would improve the relationship between credit institutions and small businesses.
ISME said that it was particularly disappointed that there was no agreement to get more transparency regarding credit rating procedures.
ISME chief executive, Mark Fielding said: "Many SMEs are troubled by the rules behind the credit rating systems of banks, which increases the feeling of apprehension and frustration towards banks.
"That is why we have asked our European representative body to get the banks to put forward, in a very clear way, the rules guiding the rating systems.”
