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Banks 'will not stop lending'

By Sarah Engle, Wed 16 Apr 2008 - Published in Loans

Banks are not going to stop lending because of the credit crunch, as they need to lend funds in order to make money, an expert has asserted.

However, the organisations may be more selective over who they lend to, said Neil Munroe, external affairs director at Equifax.

"The banks still have an appetite to lend money, but it's just a matter of who they lend money to. Banks are not going to stop lending money; they have to lend money to make money," said Mr Munroe.

But they will likely be more investigative of who they offer loans to, in order to ensure that loans will be paid back.

Recent figures from Credit Action suggest that total personal debt in the UK stood at £1,421 billion at the end of February 2008, with some £1,194 billion being secured on homes - an increase of 9.4 per cent over the last 12 months.