Brown tells banks to start lending

The Prime Minister has told British banks to lend more, as was agreed when the Government bailed them out.

The Government has directors on the boards of the three banks who benefited from the £37 billion bailout. These directors will use their influence to make sure those banks lend to consumers and small businesses – which should encourage other banks to follow suit.

As The Times reports: ‘The Government will insist, as a shareholder in the Royal Bank of Scotland, HBOS and Lloyds TSB, that they carry out their agreements to make ample lending available through mortgages and loans to small companies’.

“Credit is a vital part of modern life,” said a spokesperson for debt management company Gregory Pennington. “Mortgages, car loans, debt consolidation loans… Credit plays a major role in our society – not just individuals’ finances, but the nation’s economic health. Many people will be pleased to see the Government taking an active interest in this.”

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