The Great Debate UK
Post stress tests: lending conditions likely to remain tough
-Jane Foley is research director at Forex.com. The opinions expressed are her own.-
The financial markets have been pre-occupied with all aspects of the EU bank stress tests over the past few weeks.
For the man on the street, however, the debate boils down to just one question: when will credit become cheaper and more readily available?
The Bank of England recently reported that the stock of lending to business contracted by £2.3 billion in May. Data from major UK lenders has indicated that net lending remained weak in June.
The lack of new credit is frequently blamed for stifling the pace of economic recovery.
