Lend

Keeping an eye on the news of the financial world, this week I was struck by the number of often contradictory stories relating to financing. Governments everywhere are struggling to find the right balance between ensuring banks hold enough capital to be secure, while still being able to lend to people and businesses to help the economy expand. But in the UK, the government and regulators are sending out particularly mixed messages.

The government has been keen to push banks to lend, particularly to small businesses, last year even brokering a deal – called “Project Merlin” – in which banks agreed to increase their lending to SMEs.