09/08/2010
Banks lend around 663 million a month, and make 27 million available to businesses for credit every day, according to the chief executive of the British Bankers' Association.
Cited in The Guardian, Amanda Knight explained just how much banks are making sales finance and other sources of credit available to businesses.
"It is worth nothing that, over the last four months, small business deposits have actually grown by 2.5 billion," she said. However, Knight explained that business demand for finance remains weak. "Loans are being repaid and some larger firms are looking to shareholders for additional finance.''
"The return of profitability to the banking sector is a positive sign and indicates a healthier sector and an economy which is slowly moving out of recession."
The news comes just days after the BBA published figures which showed that more than 11,000 new loans were awarded in June, worth 598 million. That's a 70 million increase on lending in April and May.
"Over the past 12 months, nearly 7 billion of new, long-term lending has been provided," explained David Dooks, BAA statistics director, in a statement. "In fact, over the last four months, small business deposits have grown by 2.5 billion."
Laura Nineham