Former City minister Lord Myners has called for the government to publish aggregate data on the level of exposure the British Business Bank (BBB) has to defaulted peer-to-peer loans.
The peer has submitted a written request, the first in this parliamentary session, asking why the default rates on loans the BBB invested in are “commercially sensitive.”
The government responded to a query last year about due diligence by the BBB, stating that this was left up to the individual P2P lending platforms.
The latest question from Lord Myners asks if this information won’t be disclosed to protect the BBB or borrowers, and whether an aggregate value for each of the previous three financial years can be provided instead.
The BBB has previously channelled funds via P2P platforms ThinCats, RateSetter, Funding Circle and MarketInvoice (which has since rebranded to MarketFinance).
A spokesman for the lender told Peer2Peer Finance News last year that anyone seeking funds from the BBB must go through a rigorous application process that details the investment structure and strategy as well as elements such as how funds are deployed, the returns and its track record.
It may also conduct background and referencing checks and interviews with current, previous and potential investors.
Lord Myners, who was City minister in Gordon Brown’s Labour government between 2008 and 2010, has tabled several questions about the sector since July 2017, with most about Lendy or Collateral.