Banks’ support for SMEs - July to December 2011
Total SME borrowing by way of loans and overdrafts stood at £107.7bn at the end of last year, with overall levels little changed over the second half of 2011.
David Dooks, BBA statistics director, said of the new datasets:
“With lending of £108bn and deposit holding of £113bn at the year-end, the level of bank support for non-financial SMEs in the private sector is clear. During the second half of last year, there were more than 226,000 new credit facilities approved for nearly £17bn. These figures reflect application approval rates of around 77% for smaller businesses and around 90% for larger businesses.
“It is the case that whilst almost £13bn of new loans was drawn down in the second half of last year, SMEs made repayments of £14bn, leaving the total stock of borrowing marginally lower at the year-end.
“Lending facilities approved in the second half of last year proportionately reflect the spread of industry sectors and regions in which SMEs operate”.