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Bank lending 'needs to be more than doubled'

In order to nurture a sustained economic recovery, banks need to increase their lending to businesses and individuals by more than double.

This is the suggestion of the Trades Union Congress (TUC), which has published a report entitled Banking after Vickers.

It was stated the government has identified the need for £450 billion of investment is essential to the economic future of the country for the next decade.

TUC general secretary Brendan Barber claimed the nation's financial providers are currently under-equipped to support businesses.

"Bold new ideas are needed to reform the banking sector so that it returns to its proper place as the engine of wider economy growth and not as the cause of an economic depression," the expert remarked.

However, mortgage lending could be set to improve, as HSBC recently announced it has set aside £15 billion for this consideration, including £3 billion specifically set aside for first-time buyers.ADNFCR-1898-ID-801283034-ADNFCR

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