Commercial lending has declined by £32 billion in the UK following the collapse of Lehman Brothers, research shows.
Commercial lending from UK banks has declined by £32 billion since the collapse of Lehman Brothers two years ago, research shows.
Small businesses and investors are being hit hardest by this cut to
sources of finance, according to new commercial bank Aldermore.
Analysing data from the Bank of England, the lender indicated that this lack of funding is affecting healthy and promising businesses across the country.
The amount of loans outstanding to businesses is now £471 billion, down from its peak at £503 billion in September 2008.
Aldermore chief executive Phillip Monks explained: "This is particularly worrying as the deficit tackling measures mean the private sector must take more of their strain.
"Businesses out there ... are being refused funding from high street banks and this is simply because banks don't have the balance sheet strength to lend."
Aldermore recently criticised government proposals to increase the enterprise finance guarantee scheme, claiming that this would have the effect of putting sources of finance too far beyond the reach of many small businesses.
Posted by Allan Flowers
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