Business, Innovation and Skills written question – answered at on 24 January 2013.
To ask the Secretary of State for Business, Innovation and Skills what recent assessment he has made of the level of bank lending to small and medium-sized businesses; and if he will make a statement.
The most recent Bank of England data(1) shows that net lending to small and medium-sized businesses continued to fall in 2012, with £9.1 billion of gross lending to small and medium-sized enterprises (SMEs), but £10.5 billion of repayments in Q3 2012. The SME Finance Monitor shows that success rates for loan and overdraft applications is around 66%, and many businesses report they are discouraged from applying for finance. Government has responded with a range of initiatives to help boost SMEs' confidence and unlock external finance, including the appeals process whereby businesses can challenge declines, and putting in place greater transparency. BIS Ministers continue to frequently raise these issues directly with all the major banks.
However, the Government recognises that there is still more to be done. This is why the Government has announced plans to create a new business bank to help address the long-term problems around the effective and efficient provision of finance to small and medium-sized enterprises (SMEs).
(1 )Bank of England: Trends in Lending, published January 2013.
Yes1 person thinks so
No0 people think not
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