Banks remain risk averse

The quarterly Business Monitor report from BDRC has found that the proportion of successful new applications for bank lending was in steady decline with 53% of loan applications from SMEs, including renewals, being successful in the 18 months to June compared with 60% in the period to March 2013.  The Forum of Private Business warned that "distrust of the banking sector is continuing to affect the growth plans of some small businesses and the pace of the recovery" while EFF, the manufacturers' group, said that "discouraged demand" for bank lending remained an issue.