BUDGET 2010: Lloyds and RBS make lending pledges
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The government has today announced that Lloyds Banking Group and Royal Bank of Scotland have agreed legally binding lending commitments for the twelve-month period from March 2010.
Over this period, Lloyds have agreed to a lending commitment of £47bn; £3bn in additional mortgage lending and £44bn in total gross lending to businesses.
RBS have agreed a lending commitment of £58bn; £8bn in additional mortgage lending and £50bn in total gross lending to businesses.
The government will report to parliament on the delivery of the year two commitments at the end of the period.
If the government’s judgement is that either bank has failed to meet its lending commitments for year two, or has seriously breached the behaviours set out under their SME Customer Charters, the Government will inform UK Financial Investments Ltd, which will work with the remuneration committees of the relevant banks to determine the appropriate consequences of the breach of the year two commitments or the Customer Charters for the relevant executives.
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Readers' comments (1)
Anonymous | 25 Mar 2010 0:28 am
Why did Lloyds turn down one of my clients for a business overdraft yesterday then? They proved they were waiting for money to come in but still turned them down? What a load of rubbish they will never lend more than they have to except for very safe customers!!
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