THE SINGLE EUROPEAN ACT AND THE RELATIONSHIP BETWEEN SMALL FIRMS AND THEIR BANKS IN THE UK

Abstract

With the creation of the Single European market in 1992, there will be intensification of competitive pressure on small firms in the UK and on UK banks as their main providers of finance. Evidence is presented of possible mismatching of the services actually provided by UK banks and those desired by small firms, and of the unwillingness of UK small firms to switch banks, particularly if it involves crossing the Scots/English border. It is argued that the competitiveness of UK small firms after 1992 depends on either an autonomous change in the services provided by UK banks or the switching of accounts to non‐domestic banks who may move into the domestic market.

Citation

Binks, M.R., Ennew, C.T. and Reed, G.V. (1990), "THE SINGLE EUROPEAN ACT AND THE RELATIONSHIP BETWEEN SMALL FIRMS AND THEIR BANKS IN THE UK", Managerial Finance, Vol. 16 No. 5, pp. 7-13. https://doi.org/10.1108/eb013650