Bank Lending Just Not Happening

Despite the political rhetoric of all political parties in getting banks to lend more to small and medium sized companies, it is expected that bank lending by the end of this year will be the lowest it has been since 2006.

This report by the BBC commenting upon Earnst & Young research reveal that banks will only lend £429 billion (a fall of 4.6% to the last year). The disturbing figures have prompted talk in some government quarters of setting up a business bank to lend specifically to the businesses who are starved of bank lending.