This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8169596.stm

The article has changed 15 times. There is an RSS feed of changes available.

Version 0 Version 1
Darling to press banks on lending Darling to press banks on lending
(about 4 hours later)
The UK's banks have insisted that lending to small firms is continuing to rise, as they are due to meet the chancellor to discuss the issue. The UK's banks have insisted that lending to small firms is continuing to rise, as they prepare to meet the chancellor to discuss the issue.
In its latest figures, the British Bankers' Association (BBA) said total lending to small companies rose £366m in June, up from May's £133m increase.In its latest figures, the British Bankers' Association (BBA) said total lending to small companies rose £366m in June, up from May's £133m increase.
Alistair Darling said on Sunday he was "extremely concerned" that banks may be charging firms too much for loans.Alistair Darling said on Sunday he was "extremely concerned" that banks may be charging firms too much for loans.
The BBA's chief executive Angela Knight denied this was the case.The BBA's chief executive Angela Knight denied this was the case.
'Banks are lending''Banks are lending'
The chancellor, who is meeting bank bosses in Downing Street on Monday afternoon, said he was concerned that the cost of loans to small firms had risen in recent months, despite the UK's record low base interest rate of 0.5%.The chancellor, who is meeting bank bosses in Downing Street on Monday afternoon, said he was concerned that the cost of loans to small firms had risen in recent months, despite the UK's record low base interest rate of 0.5%.
Alistair Darling: 'We did not stabilise the banking system out of some charitable act'Alistair Darling: 'We did not stabilise the banking system out of some charitable act'
He added that banks had a duty to restore lending levels, and that the government did not rescue the banking sector "out of some charitable act".He added that banks had a duty to restore lending levels, and that the government did not rescue the banking sector "out of some charitable act".
Ms Knight said the banks could not lend at 0.5% because they had to pay much more than that for the funds they themselves borrowed in the wholesale money markets.Ms Knight said the banks could not lend at 0.5% because they had to pay much more than that for the funds they themselves borrowed in the wholesale money markets.
She said the wholesale price of money was about twice the base rate.She said the wholesale price of money was about twice the base rate.
"As far as the major banks are concerned they are lending, and increasing their lending," added Ms Knight."As far as the major banks are concerned they are lending, and increasing their lending," added Ms Knight.
It was right that firms should be able to demonstrate that loans could be repaid before banks would lend to them, she said.
Unfair rates?Unfair rates?
Stephen Alambritis, chief spokesman for the Federation of Small Businesses, said the chancellor was "quite right to haul in the banks".Stephen Alambritis, chief spokesman for the Federation of Small Businesses, said the chancellor was "quite right to haul in the banks".
"It is hugely important that Mr Darling keeps tabs on the banks to ensure they are lending money to firms, and at fair rates," he said."It is hugely important that Mr Darling keeps tabs on the banks to ensure they are lending money to firms, and at fair rates," he said.
"Firms need to be able to reap the benefits of the historically low base rate.""Firms need to be able to reap the benefits of the historically low base rate."
A number of banks needed emergency funding from the government due to the credit crunch. A number of banks have needed emergency funding from the government because of the credit crunch.
They included Lloyds, which owns Halifax and Bank of Scotland, Royal Bank of Scotland (RBS), which includes NatWest, and Northern Rock. These include Lloyds Banking Group, which owns Halifax and Bank of Scotland, Royal Bank of Scotland (RBS), which owns NatWest, and Northern Rock.
Others, such as Barclays and HSBC have not needed any government cash.Others, such as Barclays and HSBC have not needed any government cash.