Lib Dems Call On Banks To Increase Business Loans
Earlier this week, Barclays bank announced that it had made huge profits for the year, which in turn will lead to large bonuses being paid out to several highly placed bankers.
With the past track record of banks in general over the course of the past two years, it is not really surprising that this announcement has infuriated many individuals in the UK, particularly those who have tried to be accepted for a loan, or businesses who have required a business loan to help fund their plans.
Despite the fact that banks are telling us that they are increasing the amount of lending through the number of new personal loans and business loans they are offering to customers, the evidence from people living in the real world does not appear to support their claims.
The shadow chancellor for the Liberal Democrats, Vince Cable, has called on banks to increase the number and amount of loans they offer, particularly to businesses who are struggling to survive due to the recession.
The call comes after it was revealed that somewhere in the region of 60 per cent of businesses who applied for a bank loan over the course of the last twelve months were rejected and that 20 per cent were funding their business with a credit card.
Mr Cable said “There is a huge gap between what the banks tell us and the experience of companies on the ground. This evidence confirms that large numbers of small and medium sized businesses are still having difficulty in getting credit on reasonable terms.”
“The nationalised and semi nationalised banks owe their existence to us, the tax payer and they must make good on their commitments to increase lending at reasonable rates.”
“instead of paying themselves large bonuses, the money should instead be used to strengthen balance sheets and to provide commercial lending to sound and solvent British companies who have a vital role to play in our economic recovery.”
