Project Merlin banks 'on track' for lending targets
Aug 05 2011
Banks claim they are hitting their lending targets
The five banks involved in the government-backed Project Merlin initiative say that they are ‘on track’ to meet business lending commitments.
Barclays, HSBC, Lloyds Banking Group, RBS and Santander delivered £100.4 billion in gross new lending to UK businesses during the first half of the year, including £37.4 billion to SMEs, according to a statement.
The banks are committed to providing capacity of £190 billion of gross new lending, including £76 billion for smaller businesses, available in 2011.
A spokesman for the Merlin banks says, 'The Merlin banks are on track to meet their business lending commitments. The first half year performance demonstrates the banks’ commitment to providing businesses with the financial support they need to invest and grow and the significant progress made this year.
'The banks' efforts to encourage customers to come forward with borrowing proposals are set against the overall economic environment which remains challenging and business demand for credit which remains weak.'
Pernille Bruun-Jensen, managing director of accounting software company Intuit UK says, ‘Small businesses are the lifeblood of the UK economy and these figures from Project Merlin banks come at a critical time. It is encouraging that UK banks have met the overall business lending target set by the government but it’s even more vital that small business lending is a priority for the second half of the year.
‘It will be interesting to see whether the recommendations from the Independent Commission on Banking in September will lay out specific measures to support the small business economy.’
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