Banks ‘may need extra £110bn for lending’

25 November 2008

A think tank has suggested that another £110bn of public money may be needed before banks are in a position to resume normal levels of lending.

The National Institute of Economic and Social Research also said that a continued reluctance on the part of banks to offer loans to consumers and businesses could force Chancellor Alistair Darling to intervene further.

November’s base rate cut to 3% was aimed at encouraging lenders to offer more loans, but so far only variable-rate and tracker mortgages seem to have been significantly affected in terms of price. A loans expert for Think Money commented: “Banks are still being cautious with regard to offering loans, but that is not to say they are not available – often, it just takes a little longer to find the right loan.

“We advise anyone looking for a loan to speak to a professional loans adviser – the right advice could make finding the best deal much easier.”

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Tags: bank, banks, bank account, bank accounts, bank loans, base rate cut

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