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RBS to return to net lending
SIX YEARS after it collapsed and was bailed out, RBS is at last ready to increase its small business lending, the bank said as it unveiled a new £1bn fund for small- and medium-sized enterprises (SMEs).
Net lending to firms fell by £1.1bn in the first half of the year as old and bad debts were run off, outweighing the £5bn of new loans issued during the six months. The fund should help to push the bank into positive territory, after years of pressure to offer more credit.
“Whenever a country goes through a recession some businesses shrink, and you are going to find that some get into difficulties,” RBS’ Les Matheson told City A.M.