The Chancellor Alistair Darling in the last budget before the general election, has set Royal Bank of Scotland and Lloyds a target of £94bn of new lending for the coming year.
The Government has set a target of £94bn of new lending for the state-owned banks, with half of this being lent to small businesses.
What is of concern is that is this going to be NET lending or Gross lending? Other comments from the business finance advisors at Enable Finance Ltd are that the Government really should be intervening in the underwriting process. Its no good to just say to the banks lend more money and at the same time increase your capital adequacy.