Government welcomes banks’ statements on lending 15% more to SMEs

Last Updated
February 14, 2011

The Government today welcomed the commitment by the UK’s biggest banks on lending expectations and capacity, the size of the 2010 bonus pool, pay disclosure and support for regional growth and the Big Society.

This statement by Barclays, HSBC, Lloyds Bank ing Group, RBS and, with respect to lending, Santander, follows a period of discussion between the Government and the banks, known as Project Merlin.

Lending to businesses

The banks have stated a capacity and willingness to lend £190 billion of new credit to business in 2011, up from £179 billion actual lending in 2010. If demand exceeds this, the banks will lend more.
£76 billion of this new lending capacity will be to small and medium-sized Enterprises (SMEs). This is a 15% increase on the amount actually lent in 2010 (£66 billion). Lending to small and medium sized businesses will be part of the performance metrics of each bank’s chief executive and those of the senior managers responsible for business lending The banks’ aggregate gross new lending will be collected and published on a quarterly basis by the Bank of England.
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