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British banks 'providing more loans'

British banks 'providing more loans'

Category: Loans

Updated: 24/02/2009
First Published: 24/02/2009

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Banks in the UK are helping to make up for overseas institutions that are failing to provide secured and unsecured loans, it has been suggested.

However, the British Bankers' Association added that there is a limit to how much lenders are currently able to do.

Chief executive Angela Knight explained that banks are providing finance for house purchase as well as for cars, with two-thirds of home loans coming from such institutions.

"UK banks are working to support individuals and businesses and to fill the UK's lending gap. But demand is weak with people being cautious and repaying short term loans," she remarked.

Ms Knight also observed that pressure is being placed on lenders to provide more credit, yet they are also being told to look for deposits before doing so.

Last week a Which? survey revealed that many consumers lack faith in banks, with just 37 per cent expecting them to act in the best interests of the economy.

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