Banks still reining in lending despite incentives

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

Loans shrank by 4.6% in September, £4.6 billion worth, as companies moved to pay back debt and banks remained nervous about taking on new risks. That is the eighth month running when lending has contracted.

Economists warn that the lack of lending could throw economic recovery off course.

Howard Archer of IHS Global Insight said: "While the weakness in bank lending to businesses is partly the consequence of weak demand, it also reflects an ongoing worrying lack of supply. Significantly, the Bank of England's regional agents reported in their November survey that although availability of credit may have eased slightly since the spring, many firms 'continued to report concerns over access to finance'."

The lack of new loans is forcing more and more companies in need of capital to go to the stock market for funds, the Bank of England report Trends in Lending shows. Major banks expect subdued demand for new lending through the fourth quarter, supporting expectations of slow recovery in the British economy.

Homeowners are finding it a little easier to get mortgages. The Council of Mortgage Lenders said gross mortgage lending in Britain rose to £13.5 billion in October, up 5% from September, but still 27% lower than a year ago.