Small business lending rises
May 01 2009
Lending to small firms by high street banks increased by £271 million in March, new figures show.
According to the British Bankers' Association (BBA), the stock of lending to small companies was around five per cent higher in March than the same month in 2008.
Furthermore, lending to the enterprises rose in each of the first three months of 2009, with February seeing a £137 million rise and January experiencing growth of £98 million.
David Dooks, statistics director at the BBA, says the figures are 'reflecting general banking support and individual bank pledges to make finance available'.
In addition, the organisation reveals that deposits by small firms rose by £881 million in March, while more than 52,000 new small businesses banking relationships were established in the month.
The findings come after the Treasury Committee's latest report, which claims banks are letting down small companies.
In the study it is revealed that MPs are 'concerned' about financial institutions meeting their lending commitments, suggesting that small firms struggle to access loans without paying higher charges and fees.
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