BBA statement regarding banks profitability1

Banks have repeatedly undertaken to lend to firms where the business can support the borrowing and today reaffirm their commitment to supporting the recovery of the economy through business lending.

Chief Executive, Angela Knight said:

"Banks are well aware of their responsibility to society and our commitment to support the economy by lending to individuals and firms. The return of profitability to the banking sector is a positive sign and indicates that the sector is helping the UK economy move out of recession.

"Banks have made repeated commitments to support business. There are funds available to lend to firms with a viable business plan. But the industry's ability to support the economy needs to be considered as the increased capital and cash we are required to hold cannot both be set aside and used to finance lending.

"The industry has set up a taskforce with government to look at how best banks can work to help rebuild the economy. One work stream will particularly address business finance. We are writing to the Chancellor to set out the next steps in the process and to reaffirm our commitment to our customers, the taxpayer and the recovery of the UK economy."

For further information, please contact:
BBA Press Office (020 7216 8989)
Out of hours (020 7216 8888)

Related Links

Budget 22 June 2010: British Bankers’ Association statement