Major British banks have been urged to step up their involvement in the government's Enterprise Finance Guarantee (EFG), it has emerged today (2 October).
This scheme was created by the administration in order to boost the supply of credit to businesses and works through the coalition acting as a guarantor on 75 per cent of individual loans between £1,000 ($1,600) and £1 million.
However, figures have shown that lending through this initiative declined by 65 per cent to a total of £70.8 million during the second quarter of this year, the Daily Telegraph reports.
And, with this in mind, business minister Michael Fallon has decided to write to the chief executives of the UK's big five banks to warn them their anonymity in terms of lending could be removed unless they show a greater commitment to the EFG.
"I expect to see an increase in EFG utilisation during the remainder of this year and next - and would welcome an assurance you have plans in place to contribute to this," the official added.
By Asim Shah