Banks not lending

Funding for Lending Scheme failing to get banks lending

The coalition is still failing to get banks lending to businesses, new figures from the British Bankers’ Association (BBA) reveal, despite the introduction of the government’s Funding for Lending Scheme (FLS), which gives cheap funding to banks on the basis that they lend money to households and businesses.

The bankers

Banks let off the hook on lending

The long awaited outcome of the government’s “Project Merlin” deal with the banks has been published. Questions are already being asked about the failure of government to get tough on bonuses and the low level of transparency on pay, but … Continued

Vulgar: A greedy City fat cat quaffing champagne

Coalition gives up on tackling bankers’ bonuses as 2010 total set to hit £7bn

It’s hardly a surprise, but the coalition has decided that it has done as much as it intends to tackle excessive bankers’ bonuses, even at a time when small businesses continue to suffer as banks refuse to lend. Most banks will not pay out their bonuses for 2010 until February 2011 but the Treasury minister Lord Sassoon’s declaration in the House of Lords this week indicates the government is satisfied that its ‘work’ on City bonuses is complete.

The housing market looks to have lost momentum

More evidence housing market has lost its momentum

Figures released today by the Bank of England suggest households’ demand for borrowing remained weak in September. Net lending secured on dwellings (i.e. mortgage borrowing) increased by only £0.1 billion in the month and was just 0.8 per cent higher than in September 2009.