Restrictive lending still prominent in the UK bank sector
It has been revealed that despite online searches for loans rising by over 20% this year there has been a drop in the number of personal loans agreed with existing bank customers. This figure, highlighted by Moneysupermarket.com, is yet another blow to the UK financial sector at a time when UK taxpayers are screaming for assistance but not being heard. So what next?
The very fact that online searches for loan arrangements have risen significantly over the last year would indicate there is demand for this particular type of banking services but for some reason liquidity is still at a minimum. There is also the fact that many UK banks are very risk averse at the moment and would rather retain what little liquidity they have for the moment and review the situation at a later date.
While this particular strategy, which is being executed by many UK banks, is perfectly understandable in the short term, there are concerns that they could make the situation much more difficult in the short to medium term. There is a need to oil the wheels of personal finance in the UK as soon as possible although despite pressure from the UK government there appears little movement from the banking sector.
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