British banks form task force to boost lending

August 9, 2010 6:46:28 AM PDT
The bosses of Britain's six major banks are forming a task force to find ways to boost credit to small businesses.

In a letter to the government made public on Monday, the executives outline proposals aimed at stimulating recovery in the still sluggish private sector.

The creation of the task force follows criticism that the banking sector is failing to encourage lending despite returning to profit in recent months.

British Bankers' Association chief executive Angela Knight says banks are trying to provide finance to viable businesses, but are also still looking to cut debt after the deep domestic recession.

The task force - which will include members from the Treasury and the Bank of England - will report its initial findings to the government in early October.


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