* Finance minister, BoE, regulator write to banks
* Business leaders want faster access to emergency credit
* Trade body says banks working hard to provide funding
(Adds trade body quote)
By David Milliken and Sinead Cruise
LONDON, March 25 (Reuters) - British banks must keep lending
to businesses through the coronavirus crisis to ensure viable
companies do not fail, the government and Bank of England said
on Wednesday, after promising 330 billion pounds ($389 billion)
in loan guarantees.
In a joint letter to the chief executives of major banks,
finance minister Rishi Sunak, Bank of England Governor Andrew
Bailey and the interim chief executive of the Financial Conduct
Authority, Chris Woolard, urged them to support the economy.
"This will require a willingness to maintain and extend
lending despite the uncertain economic conditions. We must
ensure that firms whose business models were viable before this
crisis remain viable once it is over," they wrote.
Anxious business owners have flooded social media platforms
with complaints about restrictions on access to the government's
Coronavirus Business Interruption Loan Scheme and the pace at
which some mainstream banks are supplying emergency credit.
The state-controlled British Business Bank has now opened up
the scheme to all lenders who want to participate, subject to an
accreditation process, so they too can help customers weather
the crisis.
"The industry is committed to supporting the economy through
this temporary shock to the fullest extent, and has the capacity
to assist viable businesses with their cashflow and investment
needs," Stephen Jones, chief executive of trade body UK Finance,
said.
"Lenders are working hard to provide the required funding to
these firms as soon as possible," he added.
Last week, Sunak said the government would guarantee 330
billion pounds of bank lending to business, and the BoE will buy
debt known as commercial paper from big companies that had an
investment-grade credit rating or equivalent before the crisis.
On Monday, the government said businesses with sales up to
45 million pounds should be able to get 12-month interest-free
loans of up to 5 million pounds from banks.
Wednesday's letter told banks it should be a priority to
take all action necessary to enable this.
The government will guarantee 80% of the money lent.
Banks were expected to support all types of firms, not just
those covered by BoE and government schemes rolled out so far -
for example by extending overdrafts or allowing businesses to
defer loan repayments - the Treasury, BoE and FCA added.
"We also appreciate your efforts to ensure that any
flexibilities extended to customers at this unprecedented time
are recorded accurately so as to prevent an adverse impact on a
customer's credit file," they said.
($1 = 0.8480 pounds)
(Reporting by David Milliken and Sinead Cruise; Editing by
Alistair Smout and Mark Potter)