Government ‘may have to force banks to lend’

The Government may have to force banks to offer more loans and mortgages if the current situation continues, according to a leading economist.

Jonathan Loynes, Chief European Economist at Capital Economics, said: “[The government has] got to ... encourage [banks] or perhaps even force them to actually lend ... money into the wider economy so that households and companies can operate in a normal way.”

He added that reducing interest rates and increasing funds for loans were “all very well”, but said that promoting lending has to be a top priority.

Loans have been in relatively short supply in the past 18 months, as banks have experienced a combination of limited funds for loans and reduced confidence in lending.

A loans expert for Think Money said: “Loans are more difficult to come by than they were, perhaps, 18 months ago, but they are still very much available. We recommend people looking for a loan contact a loans adviser to improve their chances of finding the best deal.”

---

Think Money work with a panel of lenders to offer a range of loans. If you are thinking about getting a loan, contact one of our expert loan advisers today.

Tags: loan, loans, banks, government, capital economics, getting a loan

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider. Cards are provided by third parties and are subject to eligibility, status and terms and conditions. Applicants must be UK residents aged 18 or over.