British banks discriminate against ethnic minorities in the way they distribute loans and set interest rates, claims the deputy prime minister. Black individuals are allegedly four-times more likely to have their loans outright denied than white people.
At the 30th anniversary of the Scarman report into the Brixton riots, Clegg said that Britain has made progress in terms of racial equality but denounced discrimination against ethnic communities in businesses and banking. In the war on race inequality economic opportunity is often overlooked, added Nick.
The politicians argued that banks are holding back people from breaking the “last frontier” of racial economic equality. “We know that 35% of individuals from black African origin say they want to start a business, but only 6% actually do. Are they having problems accessing the loans they need?” he asked. Past evidence showed that companies owned by black individuals are four-times more likely to have their loans outright denied than firms owned by white people. Bangladeshi, Pakistani, black Caribbean and black African owned businesses have also been subject to higher interest rates than white and Indian owned enterprises.
Clegg challenges the banks to show they are meeting their responsibility to ethnic minorities and will set up an inquiry into their practices. “Britain’s banks, bailed out by the British people, have just as much responsibility as everyone else, arguably more responsibility, to help Britain build a strong and dynamic economy. Unleashing black and ethnic minority talent is their duty too,” said the deputy prime minister.
The inquiry “will look at the barriers preventing black and ethnic minority groups from accessing loans”.
