Lending to UK business weakest on record in July -BoE

Really2

To throw a spanner in the works.
A small ear wig would have the same amount of brain cells as a medium and a large one.

mewbie_2

Really2 wrote: »

To throw a spanner in the works.
A small ear wig would have the same amount of brain cells as a medium and a large one.

Let's not go overboard on this. It was a parable. The parable of the three earwigs - the first one either BTL'd or STR'd, the second one bought a house to live in, and the big one lives in the second one's house rent free.

chucky

mewbie wrote: »

Some t0sser.

i know it wasn't you - must have been another one then

Doozergirl

Business Lending will always reduce in the summer period.

Lloyds Halifax, Bank of Scotland who do take a significant section of the business banking pie have been literally in the middle of a huge Commercial Banking restructure from top to bottom throughout July and August. When the business managers are wondering whether the next pay check is coming, their minds aren't going to be so focussed on lending and that is certainly reflected in their lending figures for August but those left with jobs now still have their GAPS targets to hit.

I don't think bad debt from small customers impacts nearly as much as bad business lending. I don't think the banks are expecting any great shocks - they threw as much of their bad debt at the government as they could so they're starting to find that things aren't perhaps as bad. They still have the secured assets of that bad lending.

Thrugelmir

Doozergirl wrote: »

They still have the secured assets of that bad lending.

The assets may yet fall further in value though. Viz commercial and residential property. Smaller company Directors use their residential property to secure commercial lending facilities.

inspector_monkfish

dont forget to meddle with your teams and captain before the weekend fixtures....

http://fantasyfootball.skysports.com/

bo_drinker

lemonjelly wrote: »

Thanks both.

I floated a theory yesterday that the banks may be building up balance sheets in anticipation of further problems, possibly coming from individuals struggling with their secured/unsecured debts, and rising bankruptcies. Can I ask if you think this (or something similar) could be a reason why?

Surely if the money was going to where it should with Q E then the businesses would survive then through survival/ investment they would employ, or people would be safe in their work hence being able to look after their finances at home Banks will not be doing anyone any favours yet again.

Thrugelmir

bo_drinker wrote: »

Surely if the money was going to where it should with Q E then the businesses would survive then through survival/ investment they would employ, or people would be safe in their work hence being able to look after their finances at home Banks will not be doing anyone any favours yet again.

Why do profitable businesses need to borrow more?

Business borrows to expand and grow. Few will doing so in the current climate.

The weak and badly managed will fail. So lending further helps no one.

Why not blame management of business rather than the banks?

inspector_monkfish

Thrugelmir wrote: »

Why do profitable businesses need to borrow more?

Business borrows to expand and grow. Few will doing so in the current climate.

The weak and badly managed will fail. So lending further helps no one.

Why not blame management of business rather than the banks?

but what if a profitable business is only struggling, because all the failing businesses are not paying it the money they owe it...

Doozergirl

Thrugelmir wrote: »

The assets may yet fall further in value though. Viz commercial and residential property. Smaller company Directors use their residential property to secure commercial lending facilities.

Yes you're right but from the impression I've got from the bank, they've written off the full value of each of those bad debts, therefore any value in the assets is actually extra money.