Shawbrook Bank deals with breaches in asset finance business

According to the company, the charge of about GBP 9 million relates to a number of loans being underwritten in its asset finance business that did not match its lending criteria.

The problems have been discovered in its asset finance division, which typically lends money to small companies so that they can buy assets, such as machinery. The bank said it found irregularities in one office in the asset finance part of our business finance division. This issue also affects Shawbrooks GBP 14.7million credit facilities.

Shawbrook is a specialist bank which offers consumer lending, commercial mortgages, asset finance, secured lending and savings products.