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Bank Lending

Volume 490: debated on Thursday 26 March 2009

22. To ask the Chancellor of the Exchequer what recent discussions he has had with banks on plans to increase lending. (266546)

The Government have regular discussions with the lending sector on a wide range of issues. As announced in the 2008 pre-Budget report, the Government have established a new lending panel, bringing together Government, industry and consumer groups to monitor lending to households and businesses.

On 19 January 2009, the Government announced measures designed to reinforce the stability of the financial system, to increase confidence and capacity to lend, and in turn to support the recovery of the economy. These build on the measures announced on 8 October last year. Further information is available at:

http://www.hm-treasury.gov.uk/press_05_09.htm.

The Government have negotiated quantified lending agreements with the banks participating in the asset protection scheme and extended credit guarantee scheme as announced in January this year. Details of the RBS and Lloyds Banking Group lending agreements are published on the Treasury website.

To ask the Chancellor of the Exchequer what steps he is taking to monitor levels of bank lending to businesses and homebuyers. (266538)

On 19 January 2009, the Government announced measures designed to reinforce the stability of the financial system, to increase confidence and capacity to lend, and in turn to support the recovery of the economy. These build on the measures announced on 8 October last year. Further information is available at:

http://www.hm-treasury.gov.uk/press_05_09.htm.

The Government have negotiated quantified lending agreements with the banks participating in the Asset Protection Scheme and extended Credit Guarantee Scheme, as announced in January this year, to determine the amount of lending they will provide to homeowners and businesses. The Government will report to Parliament annually on the delivery of these agreements.

As announced in the 2008 pre-Budget report, the Government have established a new Lending Panel, which will improve monitoring of lending to households and businesses. The remit of the panel is set out in the 2008 pre-Budget report.