Banks in Crisis?

Having just a few moments ago put the phone down after a conversation with my bank manager I can conclude the following.

1. My bank is more than happy to extend the line of credit to my business.

2. My bank has, according to my manager, over £130 MILLION pounds sitting in a fund to lend to businesses who need it but they are not requesting it.

3. This is at odds with the news reports that banks are not lending thus magnifying the financial crisis.

4. I suspect that the banks are prepared to lend to people who are able to repay that money but not to those higher risk customers who cannot.

5. As risky lending, toxic debt etc are often cited as reasons why the banking system nearly collapsed is it wise to be campaigning for banks to continue that practice?


Edit: Having just watched Charlie Falconer on Question Time (29/01/09) repeat at least 4 times that "the banks must start lending again".

I'm amazed. My bank wants to lend me money - but I don't want to borrow it and that is the real problem. People who can and will repay their borrowing are being cautious as to the level of their liabilities. Those who exercise less financial control are finding that the banks are being more scrupulous about who they lend to and are therefore being denied extra credit.

Borrowing is cheaper now than 12 months ago partly due to the reduction in the BoE base rate and partly due to the banks trying to encourage borrowing. A £100k loan that 12 months ago would have cost me base + 4.5% I can now get for base + 2.5% should I want it.