HSBC, Santander, Lloyds, Barclays and RBS agreed to business lending targets with
the government as a way to support the UK’s economy. They were given a lending target
of £190Bn to businesses and by the looks of things they are well on track to meet it.
In the first six months of 2011, the 5 banks have lent over £100Bn to businesses illustrating
their dedication towards providing developing businesses with the investment they need to
succeed.

A breakdown of the lending shows that £37.4Bn has been lent to small/ medium sized businesses
which is just under half of the £76Bn target they are expected to reach by the end of the year.

The government has responded well to these figures with a tresurary spokesperson stating that lending
has increased by 20% in these last three months compared with the three months previous. Labour disagrees
however, and believes that lending to small businesses has been unsatisfactory as they have missed the second quarter target of £38Bn.

In addition to the lending targets being given, the government also agreed that banks should work on the way in which they work with businesses in that there should be more trust and truth involved in their relationships. It is now feared that the measures being taken by the banks to cut costs will have a negative impact on their communication with lending businesses.

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About The Author

Lee Murphy

MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.

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