Bankers urged to keep on lending

Mar 4 2009 By Peter McCusker, The Journal

THE region's most senior bankers have been called to a meeting with the heads of One North East where they will be encouraged to step up lending to North East business.

ONE chairman Margaret Fay, its chief executive Alan Clarke and Business Link chief executive Alastair MacColl met regional banking bosses to stress how important their role is in helping business survive the recession.

And next week a second meeting with the most senior regional officials from 10 national banks operating in the region will take place with support for business being the main item on the agenda.

Ms Fay said: "This will be our second meeting to discuss the business environment, share intelligence and learn more about the banks’ plans to begin lending to business again.

"Bank lending to businesses and to each other is key to re-igniting the economy and we will be seeking their views on the progress made in implementing the Government’s Enterprise Finance Guarantee scheme.

"There is a huge demand for access to finance in the North East economy as we have seen by the oversubscription of our £8m Transition Loan Fund to help viable firms struggling to cope with cash flow issues."

Leigh Taylor, area director for commercial for Lloyds Banking Group attended the earlier meeting. He said: "One North East were trying to get a feel for what we are experiencing in the marketplace and find out what we are doing to help regional businesses.

"It was a good opportunity for One North East to understand how the banks are looking to support North East business. We are all committed to helping North East business through the recession and will now be meeting on a regular basis."