Lending to small firms "squeezed" during first quarter of 2010, says BoE
The Bank of England (BoE) has claimed that lending to small firms by the banks was "squeezed" during the first quarter of 2010, as credit spreads - the difference between the costs of funding and rates of lending - widened for small firms and improved for larger firms.
The BoE's latest survey on lending also revealed that the amount of credit available to small firms had not changed much during the three months. It also noted that more expensive credit was on offer to small firms while larger firms benefited from cheaper credit, as they were viewed by lenders as less risky.
Read more on this story at:
http://www.channel4.com/news/articles/business_money/lenders+squeeze+small+businesses/3598392
