Banks Are Supporting Consumers With Loans

Tuesday, 24 February, 2009

The major high street banks are currently helping consumers and businesses by providing a number of loans, one financial body has claimed.

According to the British Bankers' Association (BBA), as many as two-thirds of loans required for house purchases by UK buyers are being provided by banks in the UK as many lenders from overseas are refocusing on their home markets.

Chief executive of the BBA Angela Knight said banks in the UK are currently working to support consumers facing economic difficulties.

"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 stated.

Ms Knight added: "There is a limit to how much of the burden banks can bear alone. They are being squeezed by calls to lend more - while they are being told that they need to look for deposits before doing so."

In January the BBA announced that its lost account service had received nearly a quarter of a million trace requests in its first year of being active.

Source: http://www.compareandsave.com/