UK BUSINESS LENDING STATISTICS

Figures from HM Treasury published today reveal that UK lenders have supported over 1.33 million businesses across the country through government-backed coronavirus lending schemes. £15.5 billion of financing has so far been approved through the Coronavirus Business Interruption Loan Scheme, £3.8 billion through the Coronavirus Large Business Interruption Loan Scheme, and over 1.26 million small and micro businesses have been supported through the Bounce Back Loan Scheme.

Government-backed loans are just one part of the industry's plan to support businesses of all sizes and from all sectors. Lenders also have a wide range of additional measures available, including working capital extensions, overdraft extensions and capital repayment holidays, ensuring businesses can access the right support that suits their needs.

Stephen Pegge, Managing Director of Commercial Finance at UK Finance, said:

Businesses of all sizes continue to face significant challenges in the face of the pandemic, but the banking and finance industry has a clear plan to get them through these tough times.

?Lenders have approved finance for over 1.33 million million businesses through government-backed loan schemes, with bank staff working incredibly hard to ensure companies can access the support they need.

?These schemes are just one part of a wide package of measures from the industry, including commercial lending, capital repayment holidays, extended overdrafts and invoice finance facilities.

?It is important to remember that any lending provided under government-backed schemes is a debt not a grant, and so firms should carefully consider their ability to repay before completing an application.

CLEARING EQUIVALENCE DEAL APPROVED

Banks and other financial market participants in the European Union will have until mid-2022 to cut their reliance on derivatives clearing houses in Britain, the bloc's executive European Commission said on Monday (Reuters).

EU financial services chief Valdis Dombrovskis said he has approved a proposal to allow clearing houses or central counterparties (CCPs) in Britain to continue serving EU customers for 18 months from January 2021.

Conor Lawlor, Director of Brexit, Capital Markets and Wholesale, said:

This time-limited equivalence decision is an important step to help mitigate disruption to UK-based clearing houses and the EU-based firms that rely on them.

?Both the EU and UK should now progress as many of the key equivalence decisions for financial services as possible to soften the impact of Brexit on customers on both sides of the channel.

Separately, the outgoing head of the Financial Conduct Authority Chris Woolard called for the maintenance of the ?highest international standards? after the Brexit transition to maintain the City of London's reputation (Financial Times, p3, £). In a speech yesterday, Mr Woolard said there was no need for the UK to compromise on its principles to retain business.

NEWS IN BRIEF

Data breach victims should have more rights to sue companies under GDPR, the consumer watchdog Which? has told the Government after a survey found almost half had fallen prey to fraudsters (Daily Telegraph, p8). Customers are urged to follow advice of the Take Five to Stop Fraud campaign to keep themselves safe from fraud.

The FTSE 100 suffered its worst day in more than three months as the odds of a second lockdown narrowed and coronavirus outbreaks in Europe affected world markets (The Times, p33, £).

The number of British companies citing capital and liquidity issues as major risks has risen by 40 per cent in a year, according to a survey by the Chartered Institute of Internal Risk (The I, p44, print only).

Boris Johnson will today tell Britons to work from home where possible as the UK introduces fresh restrictions to tackle the coronavirus pandemic (City AM).

LATEST BLOGS

Gary Robinson, Detective Chief Inspector, DCPCU discusses how the unit successfully prevented over £12 million of fraud in the first six months of 2020.