Is credit more available in the corporate market?
A survey by the Bank of England seems to suggest that credit in the UK corporate market is now more readily accessible than it has been for some time. The bank has confirmed that UK financial institutions have seen an increase in the availability of loans available for customers in the business arena although on the downside it would appear that growth in liquidity was lower than expected.
While the Bank of England is attempting to put a positive spin on the report, and the obvious improvement in liquidity over the last few months, the fact that the rate of growth was less than last month may suggest there are still some barriers for corporate entities to overcome before funding will be available to all. It is vital that UK banks increase liquidity in the business arena because ultimately if businesses are not allowed to prosper then unemployment will increase and more pressure will be placed upon business finances.
Now is the time for the UK government and the UK regulators to be pushing the UK banking sector for an increase in liquidity but whether this will materialise in the short to medium term is something which is very much open to debate.
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