Banks need to stimulate Merlin lending, says chamber
West Midlands business leaders are urging action from the banks after it was revealed Project Merlin was on course to miss its lending targets.
The banks behind the lending scheme agreed with the government in February to increase lending to small and medium sized businesses to £76bn in 2011. That equates to £19bn in the first quarter of the year - but the actual lending figures had fallen £2.2bn short.
Christine Braddock, president of Birmingham Chamber of Commerce and Industry, said: “The figures are disappointing because Project Merlin was designed to stimulate credit-worthy small businesses.
“While today’s figures do not indicate an improvement in credit conditions for small businesses, the banks should do more to take the message to customers. The banks are believed to be trying to stimulate demand for new borrowing but these figures indicate they need to do more.”
The Coventry and Warwickshire Chamber of Commerce said the figures had come as "no surprise".
Louise Bennett, chief executive, said: "What we really need to see is old-fashioned relationships developing again between the banks and their business customers and we are seeing evidence of those relationships on our patch. But there is no denying that one of the single biggest issues raised at chamber events is still access to funding.
"Locally, the Coventry and Warwickshire Local Enterprise Partnership (LEP) is working with banks to try to resolve this issue for companies in the city and the county."
