Implementation of the HLPs on SME feedback:
Joint letter from European banking and SME organisations

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Publication date: 19 March 2020
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European Banking and SME Organisations move forward an industry-wide dialogue on access to credit

Dear Executive Vice-President Dombrovskis,

First of all, we would like to express our appreciation and gratitude to you for having engaged with the business and banking industries upon the signature of the ‘High-level Principles on Feedback Given by Banks on Declined SME Credit Applications’ (simply: the SME Feedback Principles, or the Principles), and for attending the presentation and signing ceremony in June 2017. As you are aware, the Principles are aimed at improving the dialogue between a company seeking finance and a bank through the provision of better information by both in relation to financing requests that cannot be accommodated in full.

Upon signature, it was agreed that members of the EU banking associations would encourage discussions at the national level and that they would enter into a structured dialogue with their SMEs representative counterparties while promoting the agreed Principles at the European level. In addition, the signatories agreed to undertake a joint stock-taking exercise two years after the approval of the Principles.
Today, following a productive and cooperative discussion among signatories, we are pleased to inform you that the stock-taking exercise on the status of implementation of the Principles was successfully concluded in 2019, demonstrating positive and encouraging outcomes as set out in the attached appendix.

The cross-reference of data available has shown that at a national level, banking and SME associations have, in the vast majority of cases, established a structured dialogue on the expectations of both sides from the SME Feedback process, allowing for different initiatives aimed at implementing the Principles or to facilitate the discussions on SME access to finance in the different jurisdictions.

As a matter of fact, in recognition of the substantial value generated by the comprehensive dialogue among our associations throughout this exercise, we intend to broaden the ongoing industry-led discussions by continuing our exchange of information in the form of a series of regular coordination meetings {e.g. once or twice a year, as deemed useful) among banks and SMEs representatives {on an open and inclusive basis) to discuss the wider spectrum of issues related to SME access to finance that pertain to the EU level. Such discussions will complement those at the national level, which we will continue to encourage in the spirit of the agreed Principles.

We will update the European Commission on the outcomes of our discussions as well as on the broader issues relating to SME access to finance.

Yours Sincerely,

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For more information:

Daniel Bouzas, d.bouzas@ebf.eu