March
has banking behaviour changed since the start of the year and if so for better or worse?
 There has been a change and it is definitely for the worse. I was recently told, independently, by two senior bankers that it is now going to be extremely difficult to get any committee approval for any funding for projects, which will definitely affect business in the North-east.
"Over many generations, Scotland had developed a reputation for breeding good, reliable, sensible bankers. Unfortunately this reputation has now been lost because of the irresponsible behaviour of senior management in some banks.
"While I welcome the recent apologies by four of the leading bankers at RBS and HBOS, and also the decision to cut the bonuses by up to 90%, I can only hope that the Scottish banking community eventually regains its reputation.
Charles Skene, chairman, The Skene Group
 There seems to be little change in the funding support being offered to small businesses. I am lucky that I have not required funding, but know of less fortunate contacts who have had requests turned down. Some good businesses with healthy order books are apparently being denied credit extensions which might enable them to manage cash flow better.
Capping bonuses at the executive level can only be a good thing at the present time. Bonuses should be linked to personal and corporate performance, but will the bonuses go to the people in the corporate parts of the banking sector or go to the staff who, through no fault of their own, face an uncertain future in their front-line job?
Janine Sydenham, director of Zest HR
 The SME market is still suffering financially from a problem that was not of their making. Regardless of the rhetoric the position is not improving. The banks remain illiquid and that is not good news for the SME market.
"Where liquidity does exist it seems the banks are deploying this for the opportune acquisition of corporate clients to the detriment of the smaller businesses.
"Banks have never been in the risk business but we are seeing a new level of risk aversion.
"The biggest concerns are the top end start ups and mid cycle R&D businesses with real growth potential who need seed or follow on funding packages.
"The promised government lending support programmes need to kick in quickly or we may lose many of Scotlands' brightest prospects.
Gary McEwan, chief executive officer, Enterprise North East Trust
 There is no doubt that uncertainty now pervades relationships at all levels and this is seen in lending limits and lending criteria. Replies like, ‘We will try but it will be an uphill struggle' are quite common leading the business community wondering where and when it will end.
"This uncertainty operates to the severe disquiet and certain detriment of successful bank customers and those with sound prospects. Of course it will also weed out some projects which would be likely to fail but it kills the likely winner along the way.
"Uncertainty is a blunt instrument on which no economy should rely and on which none will thrive. Spare a thought for the banks however - it would be hard for anyone to get it right at a micro level when the world's brightest and best admit to failure at the macro level
David Laing, chairman of Ledingham Chalmers LLP
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