Small business lending drops

The level of credit that banks are providing to SMEs has declined despite the best efforts of the government to force them to increase the flow of cash to smaller firms.


The level of credit that banks are providing to SMEs has declined despite the best efforts of the government to force them to increase the flow of cash to smaller firms.

Under the terms of Project Merlin, which the banks agreed back in February, more money was meant to be handed out to business and although the broad lending figures are up in the crucial SME category the number is down.

Between July and September there were £57.4bn of new loans from the main high street banks, which was an increase on the £53bn handed out in the second quarter.

But the amount of credit making its way to SMEs fell in Q3 to £18.8bn from £20.5bn the previous quarter.

Small business groups have been urging more credit for the last few years and the reaction this morning was to criticise the failure to support the engine of the UK economy, which had missed out on growth opportunities as a result.

MicroScope+

Content

Find more MicroScope+ content and other member only offers, here.

Read more on Finance and Credit

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

ComputerWeekly.com

  • CIO Trends #6: Nordics

    In this e-guide, read how the High North and Baltic Sea collaboration is about to undergo a serious and redefining makeover to ...

  • CIO Trends #6: Middle East

    In this e-guide we look at the role of information technology as the Arabian Gulf commits billions of dollars to building more ...

  • CIO Trends #6: Benelux

    In this e-guide, read about the Netherlands' coalition government's four year plan which includes the term 'cyber' no fewer than ...

SearchITChannel

Close