UK banks on track to meet Project Merlin targets

| August 5, 2011 | 0 Comments

Provisional figures released today have revealed that the UK’s five biggest banks are on track to meet their lending targets under the Project Merlin deal.

Under the agreement, Project Merlin, Barclays, Royal Bank of Scotland, Lloyds, HSBC and Santander all committed to lend £190 billion to all businesses this year.

Of this figure, around £76 billion of credit should be made available to SMEs this year – equating to around £19 billion every quarter.

A spokesperson for the five banks said: “The Merlin banks are on track to meet their business lending commitments.”

The banks said they had lent £100.4 billion to UK businesses in the first six months of the year against an annual target of £190 billion.

Meanwhile, £37.4 billion of this went to SMEs against an annual target of £76 billion.

A spokesperson for the Treasury said: “Today’s provisional results are a big improvement, with lending to small businesses up by 20% for quarter two compared to quarter one.”

The Project Merlin agreement includes a clause that if banks do not meet lending commitments, chief executives will not be able to receive their maximum pay and bonus.

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