Mandelson tips lending growth

Lending by UK banks should soon start to pick up, business secretary Lord Mandelson has stated.

In an interview with the Independent, the minister cited the recent bailouts of Lloyds TSB and the Royal Bank of Scotland - along with the action taken on liquidity and capital - as reasons for matters to improve soon.

He said "a change in lending behaviour" will emerge "fairly soon", although this will not "happen overnight".

If Lord Mandelson is correct, those with their own firms may find themselves able to access finance to make new investments.

Lord Mandelson became business secretary in October, having been an EU trade commissioner for the previous four years.

He has also been Northern Ireland secretary and trade secretary.

Written by Rachel Crook

Published on: March 19, 2009

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