UK Banks Have to Improve Loans’ Availability

On Friday, August 6th, UK banks announced they need 2 months to study the market in order to come up with several ways to meet the demand for loans.

In his letter to Mr. Osborne, Chancellor of the Exchequer, Mr. Green, chairman of HSBC and of British Bankers' Association, said that UK lenders do realize they play an important role in the country's economic recovery and agree to take more steps to increase the number of approved loans.

Let us remind that UK banks have long been criticised for giving out fewer loans that they should to help British economy recover. The attack on the lenders was the strongest last week as RBS and Lloyds reported a return to profits, whereas HSBC, Barclays and Santander announced they've seen a sharp increase in profits.

In his appeal to the lenders, Mr. Osborne said that they either have to increase the number of business loans or face government-sanctioned lending targets. Neither he, nor Mr. King of the Bank of England believe that the demand for loans is inadequate.