RBS and Lloyds to increase lending to businesses

| March 23, 2010 | 0 Comments

Bailed out banks Royal Bank of Scotland (RBS) and Lloyds Banking Group are to increase the amount they lend to businesses.

RBS and Lloyds, which are 84% and 41% owned by the taxpayer, respectively, were rescued at the height of the financial crisis but there have been concerns that the bailed out banks have not helped small businesses through the economic downturn.

As a result, in tomorrow’s budget, the two banks are expected to be told to up their lending targets.

The two banks have lent a combined gross total of £76 billion to businesses. However, the economic outlook has meant customers have been cautious and have therefore, repaid debt more quickly.

Consequently, the banks have not hit their combined net lending target of £27 billion to businesses.

The new target is expected to be around £100 billion for both banks but neither would comment on the targets.

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