Banks turn away even more firms seeking loans
Britain's banks have restarted their lending squeeze, starving small companies of credit, the Federation of Small Businesses (FSB) warns today.
Its quarterly Voice of Small Business Index, which surveys the sector's confidence, has found that four in 10 small firms applying for credit are being turned away. The effects are malign, including the 10th consecutive quarter of job cutbacks. Confidence among small businesses and entrepreneurs has fallen in every industry sector except health and motor services.
The findings came days after the Bank of England launched its initiative to lend up to £140bn to banks, much of which they will have to pass on in lending
Meanwhile the Engineering Employers Federation, which represents the manufacturers, has urged the Government to increase competition between banks and address "a lack of options for accessing finance to support growth outside of banks".
The federation said it wanted to see the "funding for lending" scheme getting cash to firms that need it "with a clear reporting process so that tangible evidence is given to show the money is being passed on to small firms and not just shoring up the banks".
Last year banks agreed to make more money available to small firms through Project Merlin, but critics said net lending fell and claimed that much of the new credit was not offered on economic terms.
Sources denied suggestions yesterday that the Bank of England Governor, Sir Mervyn King, has told banks they may reduce the amount of cash they hold as a safety buffer and lend the money to customers instead. Sir Mervyn has previously said that banks should shore up their defences against another crisis. Any decision to change the banks' buffers would have to be made by the Financial Services Authority.
Is your name now 'banned' in Saudi Arabia?
Seth Rogen compiles list of all the celebrities he’s got high with
Oscar Pistorius trial: Photographs of Paralympian splattered in blood after Reeva Steenkamp shooting shown in court
Missing Malaysia Airlines Flight MH370: Satellite ‘pings sent five hours after contact was lost' the only clue in hunt for £160m plane
Missing Malaysia Airlines Flight MH370: New radar evidence suggests missing plane may have been hijacked
Katie Hopkins continues campaign to become Britain's most hated talking head with poorly timed Bob Crow tweet
No EU referendum under Labour: Ed Miliband to reveal that vote on membership is ‘unlikely’ in next Parliament if party wins power
Grace Dent: Who cares if she spells it Barraco Barner? Gemma Worrall is more employable than some bookish arts graduate
Europeans have ‘got whiter’ due to natural selection in past 5,000 years, scientists say
Fracking is turning the US into a bigger oil producer than Saudi Arabia
The rise of Ukip: Study warns Labour that Eurosceptic party's electoral base now 'more working class than any of the main parties'
- 1 Is your name now 'banned' in Saudi Arabia?
- 2 Sailor who kissed a nurse in famous WWII photograph dies aged 86
- 3 Best films on Netflix: 32 movies that will put an end to your scrolling
- 4 Istanbul protesters take 'Ellen selfie' from the back of a police van
- 5 Lady Gaga has struggled with eating disorders in the past, so it's indefensible that she's glamourising bulimia in her SXSW set
iJobs Money & Business
£35000 - £43000 per annum + Bonus and Benefits: Harrington Starr: A global lea...
£50000 - £60000 per annum: Harrington Starr: Linux Systems Administrator - UNI...
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£37000 - £40000 per annum + £20000 benefits package: Pro-Recruitment Group: **...