Gavin Wheeldon: Concerned over business lending levels
Just read an interesting story on BBC News about the recent war of words between the Chancellor, Alistair Darling and the British Bankers Association (BBA) concerning the supposed (disputed) increase in business lending.
Following comments made by the Chancellor, that he was “Extremely concerned” about lending levels, the BBA promptly released figures that showed an increase in small business lending in June.
However, these latest figures are bound to cause further debate after it was revealed that the BBA classes a “small business” as one that has up to £1m annual turnover – effectively ‘fudging’ the stats, according to one blogger.
Applied Language CEO, Gavin Wheeldon commented: “If business lending is down, and everything suggests that is the case, it puts increased pressure on the cash flow of small UK businesses. Most business borrowing tends to be for expansion related reinvestment, so this means that more companies will have their attempts at growth stifled – anything that does that, particularly during a recession, is extermely counterproductive for the economy.”
Read the full story here.
You would think that the banks would serve their own long-term interests and forgo some short-term gains.
The BBA, as their regulatory (??) body should be in favour of leading by example and thus not be hell-bent on fudging the figures just to save face.
*Breathes…counts to ten…*
Lending figures of BBA. If it’s really going down so too might be the UK market. This will mostly affect small businesses.