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Member of Parliament for Bradford East@DavidWardMP on Twitter and Facebook |
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David Ward MP <>
Ward tackles Cable over bank lending targets
June 8, 2011 11:18 AM
Bradford MP, David Ward, has challenged the Business Secretary over how bank lending targets were being implemented in Yorkshire.
Figures released by the Bank of England last month suggested that the targets for bank lending to small businesses set out in the "Merlin Agreement" were likely to be missed. As part of his role on the Business Select Committee, David Ward today questioned the Business Secretary on how targets were being implemented on a local level by the banks.
Giving evidence to the Committee, Vince Cable identified SME lending as a "serious problem" but said that is was still "early days" on lending targets. He went on to say that there was a "cultural issue" and the banks needed to "change their nature".
Commenting, David Ward said:
"I visited Barlclays' regional credit centre in Leeds earlier this week, and they were quite open about the fact that the Merlin targets had no bearing on what they were doing locally. Clearly the Merlin targets have not yet filtered down to a local level. The Government needs to get a grip on this otherwise the targets for small business lending will be missed.
"While the banks are claiming that there is insufficient demand, good viable businesses in my constituency are coming to me because they are unable to get access to credit. Both cannot be right. I know this issue is top priority for Vince Cable but obviously more work needs to be done on ensuring that these targets are implemented on the ground."