Osborne calls on banks to lend more to companies

August 1, 2010

BBC News reports on the chancellor calling for banks to lend more to business.

The chancellor has warned the UK’s banks that they need to start increasing their lending to businesses.

George Osborne said the government “would not tolerate banks piling the pressure” onto small firms, and that it was their “obligation” to lift lending.

Read more.

By getting banks to lend more, George is hoping that business investment will rise, resulting in an increase in jobs and incomes. This should also have a positive impact on tax revenues and reduce benefit payments.

Advertisements

Darling warns banks on loan rates

July 26, 2009

From the BBC News:

The chancellor is to quiz bank bosses over how much they charge small firms for loans, saying he is “extremely concerned” their rates may be too high.

Alastair Darling said the cost of loans seemed to have risen, despite the UK’s record low base interest rate of 0.5%.

He told the BBC that banks had a duty to restore lending levels, saying the government did not rescue the banking sector “out of some charitable act”.

Read more