Business lending by the UK's largest banks fell during the last quarter (BoE Q2 2011) despite what Barclays says about its own performance. Of course it did - any consultant working on a local scale will report similarly.
Until Banks get training for their local business managers and then trust them to exercise some discretion to liaise with the Credit/Lending department the position will remain. So too will the belief out there that Banks aren't lending to small business. Therefore the business economy will remain flat.
The first signs that someone is thinking they should do something about it that I have seen came at a local level with an invitation to talk by a Regional Business Manager for one of the big ones. His new on the block business manager had 4 years in the Bank and 3 weeks on 'the Business Side'. An awareness course and a clip board to follow, is all he had, plus a few ideas he picked up from the family shop. Oh dear. Who is going to talk to him with any expectation of understanding?
As it is, a report has said that last year 55% of businesses didn't even bother to go to their Bank because the word is out that they will be turned down.
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