To ask Her Majesty's Government whether the demand for bank credit from small and medium-sized enterprises falls short of commitments made by banks under Project Merlin.

The Merlin agreement states that, "the five banks have agreed to make available the appropriate capital and resources to support gross new lending to UK businesses, including the capacity noted above for UK small and medium sized businesses, of £190 billion, should sufficient demand materialise." However, these five banks have also "agreed to aim to foster more demand".

Merlin is a commitment in respect of the calendar year 2011. The Government will assess the banks' performance across the year.