Banks to lend more

An increase in mortgage and business lending has been announced by Yorkshire and Clydesdale Banks.

The pair – which are owned by National Australia Bank – will increase such financial provision by £10 billion over the next two years, it was revealed today.

Such a pledge follows an announcement of pre-tax profits of £108 million in the year to September 30th.

The 2008-09 business results included a seven per cent rise in mortgage lending, representing an extra £2.1 billion.

Chief executive Lynne Peacock remarked: “We’ve kept our business safe, secure and in the best possible shape by maintaining a strong capital position and supporting our customers in these challenging times. We’re now moving up a gear.”

Earlier this month, chief economist at the Council of Mortgage Lenders Paul Samter said that there are some “encouraging” signs in the mortgage market that could indicate the credit crunch is easing.

He noted that “wholesale markets have begun to thaw”.

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