Bank Funding Hits Six Year Low

A report by the Ernst & Young Item Club has suggested that despite the Government’s efforts to encourage lending, bank lending to businesses will hit its lowest level this year since 2006.

An Ernst and Young study says that corporate lending will fall by 4.6% to £429bn at the end of 2012, which will be the fourth consecutive decline to its lowest level since 2006.

The report also predicts that although some growth is forecast to resume from 2013 corporate loans will not recover to 2008 levels until 2016.

Recently, HMG have announced a business bank to be unveiled in an attempt to boost lending.  Banks and businesses, however, differ on the current position. Banks state that demand for loans is low; businesses retort that banks are unwilling to lend.

Sc: Workplace Law MGBA; UKBA; Ernst and Young

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




MGBA Tweets

Error: Twitter did not respond. Please wait a few minutes and refresh this page.

Join 442 other followers


%d bloggers like this: