Nationwide building society delay small business lending.

Last year, Nationwide building society revealed plans to enter the SME loans market. This was great news for the SME who has struggled to get finance as the banks lose their appetite for lending. Unfortunately, after examining their balance sheet, the Prudential Regulation Authority has demanded that the Nationwide bolster their leverage ratio. A spokesman for the Nationwide said, “We have previously said that it is our strategic intention to enter the SME banking market and that we will do this at the right time for the society and our members. That remains our intention.” However they are now unlikely to launch a full SME service before 2016. Read more about it here in the Yorkshire...

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Osbourne’s £140 billion kick-start …

Osborne’s £140 billion kick-start – will it stimulate small business growth? This week, the Chancellor of the Exchequer, George Osborne, announced a £140 billion emergency scheme in order to try to avoid a second credit crunch.  Backed by the Treasury, the Bank of England is to offer money to high street banks to kick-start mortgage and small business lending.  As the Chancellor says, this funding is for “the business that wants to expand”. The funding for lending scheme will allow banks to ‘swap’ assets with the Bank of England in return for money that can be loaned out to small businesses and other customers.  In addition to this funding for lending scheme, the Bank of England will inject a minimum of £5 billion a month into financial institutions to improve their liquidity. With further details eagerly anticipated, some are worried about how the scheme will actually work.  However, in the current climate where credit can be hard to come by, this seems like a step in the right direction. Courtley...

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