Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

SME loans fall by £14bn in last year with more pain on the way

by April 24, 2023
April 24, 2023
SME loans fall by £14bn in last year with more pain on the way

Outstanding bank loans to SME’s in the UK fell by £14bn in the year to March with concerns that this figure could fall further due to March’s banking turmoil and mooted regulatory changes.

In the year to March, outstanding bank loans fell to £195bn from £209bn according to Bank of England data sourced by debt advisory firm ACP Altenburg.

The data suggests banks started to rein in funding about a year ago when interest rates began to rise. Altenburg’s Will Senbanjo suggested that the collapses of Credit Suisse and Silicon Valley Bank (SVB) could further reduce lending as banks focus on reducing risk in their lending books.

“Banks were already reducing their lending to SMEs over the last few years. The recent bank collapses may push them to reduce their risk appetite even more,” he said.

Although reduced risk appetite has stymied SME lending, lending to large businesses increased by £14bn in the same period to £336.8bn from £322.1bn.

“During times of economic stress we often see banks pivot away from small businesses in favour of lending to bigger businesses. Until the economic picture starts to become less uncertain, smaller businesses are likely to find bank lending harder to come by,” Senbanjo said.

The news comes as regulators in the UK are considering proposals as part of the Basel 3.1 regulations which would remove existing incentives for SME lending.

Removing the preferential treatment, known as the SME Supporting Factor, will force SME lenders to hold a higher level of capital against loans to the sector.

The proposals have been criticised intensely by business groups who suggest the reforms are “deeply irresponsible”.

Data collected by Oxera for SME lender Allica Bank suggested that the changes could result in a 25 per cent fall in SME lending, or about £44bn.

Read more:
SME loans fall by £14bn in last year with more pain on the way

0
FacebookTwitterGoogle +Pinterest
previous post
Employers gain nearly two weeks extra a year from hybrid workers
next post
Government slammed for “deafening silence” over umbrella industry consultation

You may also like

Mike Lynch Acquitted of All Fraud Charges in...

June 6, 2024

Electric vans reenergise Ellesmere Port factory

September 8, 2023

3 Transformative CEOs and How They Are Tackling...

January 31, 2023

UK Rail network set to come to a...

September 22, 2022

Harland & Wolff bailout sparks concerns over future...

August 2, 2024

Next Tube Strikes: Dates and Affected Lines Revealed

April 1, 2024

Empowering Women’s Health in the Workplace: A Strategic...

August 28, 2024

Conservatives Propose Cap on Migrant Visas Amid Election...

June 4, 2024

The Entertainer halts new store plans due to...

November 9, 2024

Should All Lenders Publish Complaint Data and Be...

June 16, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Senate Republicans ram Trump’s ‘big, beautiful bill’ through key test vote

      June 29, 2025
    • Chief Justice Roberts sounds alarm on dangerous rhetoric aimed at judges from politicians

      June 29, 2025
    • Britain’s fastest-growing firms revealed for 2025: Dfyne, Nala’s Baby and Hawkstone lead the charge

      June 29, 2025
    • Schumer to force Senate reading of Trump’s entire ‘big, beautiful bill’

      June 28, 2025
    • Rubio condemns Iran’s ‘unacceptable’ threats against IAEA director

      June 28, 2025
    • Key blue state Republican says Senate’s local tax write-off offer is a ‘good deal’

      June 28, 2025

    Categories

    • Business (8,330)
    • Investing (2,081)
    • Politics (15,853)
    • Stocks (3,177)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved