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Lack of lending is "key issue"

Lack of lending is "key issue"

Category: Loans

Updated: 21/01/2009
First Published: 20/01/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
A lack of lending from banks is a major problem in the current economic crisis, it has been stated.

"The key issue at the moment is the lack of bank lending and anything that can boost bank lending is obviously going to help the current economic situation," managing economist at the centre for economics and business research Ben Read said.

Commenting on the government's new finance package to help boost lending by banks, he questioned whether it might already be "too late" to help banks increase lending, something which could affect those seeking secured or unsecured loans.

Mr Read added that the current financial crisis began with the banking sector and as such this industry is a "key solution" towards recovery.

The new range of measures announced by chancellor Alistair Darling yesterday included providing a new facility for asset backed securities, establishing a new Bank of England facility for purchasing high quality assets and offering a capital and asset protection scheme for banks.

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