Calls for bank to lend more following huge profits

It was announced by the Lloyds Banking Group recently that it had made £1.6 billion in profits in the first half of this year, showing how things had turned around since a year ago when the bank made losses of £4 billion in the same period. Lloyds was one of a number of banks that is now seeing a turnaround with regards to profits.

Following its announcement regarding its first six months profits Lloyds Banking Group is now feeling the pressure as industry officials put the pressure on with regards to lending levels. Business leaders and politicians have called upon the banking giant to do more to help the economy by boosting lending levels.

The banking group is part state owned, and the profits for the first half of this year were said to be double the amount that the group had been expecting. A number of other banks have also posted profits for the first half of the year, with a number of others expected to report similar success over the coming weeks.

Politicians and business leaders are now concerned that whilst banks are now making profits again they do not seem to be doing enough with regards to boosting lending levels, which could ultimately have a profoundly detrimental effect on the economy, which is still very fragile following the recession.

Following the announcement of the Lloyds Banking Group profits Stewart Hosie, SNP Treasury spokesperson and a member of the Treasury Select Committee, said: “While we can breathe a sigh of relief that Lloyds is back in the black, we still need guarantees over the persistent concerns about lending to businesses. There is an obvious contradiction between Eric Daniel’s comments on demand and the experience of businesses across Scotland. The bottom line is that all the banks must demonstrate that they have learnt the lessons of the financial crisis, and business lending must come before bonuses and bumper pay deals.”