Qualified advisers answering your
Financial Questions
call 0800 092 1245

Alistair Darling to intervene regarding RBS and Lloyds bank lending

In a highly controversial and highly political move it is believed Alistair Darling will use the forthcoming budget to issue lending targets for Royal Bank of Scotland and Lloyds bank. He is rumoured to be on the verge of demanding £90 billion in extra lending to businesses during 2010 after the earlier debacle which saw the two banks miss earlier lending targets.

As the financial situation at Royal Bank of Scotland and Lloyds bank deteriorated earlier in the recession we saw the government issue targets of £16 billion in net lending to Royal Bank of Scotland and £29 billion for net lending at Lloyds bank, to the year ended March 2010. In the end Royal Bank of Scotland only managed an additional £12 billion of lending and Lloyds bank fared materially worse with a net £11 billion increase.

While moves to increase lending to businesses in the UK will be welcomed across the board there is concern about political intervention in the commercial markets and how this will impact upon other banking institutions. This is a very difficult situation as taxpayers have a majority stake in Royal Bank of Scotland and a substantial stake in Lloyds bank but it is tricky as to know whether the government should intervene and make use of the shareholdings for the good of the wider economy.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details