Business lending by banks expected to reach 13-year high in 2020, according to research
Business lending by banks is expected to reach a 13-year high in 2020, according to research.
Because of the strain put on company finances by the pandemic, the EY Item Club said business lending was set to grow by 14.4 per cent this year.
On the rise: Because of the strain put on company finances by the pandemic, the EY Item Club said business lending was set to grow by 14.4 per cent this year
It said most firms would only be in a position to start paying down the huge sums borrowed by 2022 because the economy’s return to normal would be ‘relatively slow-paced’.
Omar Ali, EY’s UK financial services managing partner, also warned that banks faced ‘increasing write-offs on all types of lending’.
‘This will add pressure to their profitability and ultimately their ability to lend more to businesses to help kick-start growth,’ he added.