Banks lending more to small businesses
15 June 2009
New figures from the British Bankers` Assocation (BBA) have suggested that banks are lending more to small businesses, in a potentially positive sign for the economy.
In April, lending to small businesses, including overdrafts, rose by £287m, up from a £271m increase in March.
The figures may indicate growing confidence amongst banks and other financial institutions, which could also benefit individual borrowers.
The BBA`s David Dooks said: "The High Street banks` support for the small business sector continues to rise."
But he added: "It is unclear... whether the financial system can generate the expansion of credit that will most likely be necessary to support recovery."
A spokesperson for Think Banking said: "There have been a number of encouraging signs that banks may be becoming more confident about lending, although it will take time before we can be sure."
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Tags: banks, bank lending, loans, overdrafts, confidence, getting a loan, getting credit, UK, economy, LIBOR, lending rates, interest rates
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