The banks, both bailed out during the credit crunch and both with taxpayers as majority shareholders, signed legally binding contracts to lend more money to small firms. Treasury officials hoped the extra money would ease the impact of the crunch on businesses. Lloyds agreed to dish out an extra £11bn to businesses this year, while RBS said it would extend a further £16bn, in return for access to the Asset Protection Scheme that was expected to insure £585bn of the two banks’ toxic debts, according to the Telegraph. Lloyds said in a statement: "While the group is working hard to meet its business lending commitment, it is clear this will be a challenge and it is currently unlikely that the group will meet its 2009 targets." Both banks claim the shortfall is down to falling demand for debt products, although small business groups will likely seize on the news as evidence that the sector is not being properly served by the banking industry. Related articles:Barclays opens £150m SME fundBanks leave SMEs in the lurchBanks block Darling’s SME fund plans
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.