Action on bank lending required urgently says Rennie (Aberdeen South & North Kincardine Liberal Democrats)

Aberdeen South & North Kincardine Liberal Democrats <info@aberdeensouthlibdems.org.uk>

Action on bank lending required urgently says Rennie

February 15, 2010 5:47 PM
Originally published by Scottish Liberal Democrats

MP Willie Rennie has called on Ministers to force UK banks to meet their lending obligations to small and medium-sized businesses in the Kingdom after separate reports from the Public Accounts Committee at Westminster and the Scottish Government slammed RBS and Lloyds over their failure to meet lending targets introduced as a condition of the financial support they received from the taxpayer.

Many small businesses in the Kingdom have encountered persistent problems as a result of the lack of credit. Mr Rennie has written to the Chancellor of the Exchequer, calling for action to be taken to force the banks to increase their lending to firms in the Kingdom.

Commenting, Mr Rennie said:

'The reports from Westminster and Holyrood both make the same clear point: when it comes to credit firms in the Kingdom are paying more and more for less and less essential support.

'Ministers have been aware of these problems for well over a year now and action to resolve this issue is long overdue. Despite the promises of the banks, the lack of credit has left many local firms facing severe financial difficulties.

'Steps must be taken urgently to ensure that the banks begin to meet their lending obligations to the taxpayer.'