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Latest News

Posted on 03 May, 2011

Bank fund to boost SME lending

Borrowing prospects for small businesses have been boosted with the unveiling of a £1.5 billion fund from the major banks.

A consortium consisting of HSBC, Barclays, Royal Bank of Scotland, Lloyds Banking Group, Standard Chartered and Banco Santander SA’s UK unit will contribute to the fund over a number of years.

The group was set up to investigate concerns that banks were not providing enough support to viable businesses.

John Varley, chief executive of Barclays, says: ‘As banks, we have an obligation to help the UK economy return to growth. The private sector will play a key role in the recovery and it's our job to help viable firms to be successful.’

The fund will operate through an independent board, including bank and Government representatives, and could start rolling out investments by April 2011

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