Lending to small businesses increases

High street banks' lending to small businesses increased by £211 million in February, according to latest figures published by the British Bankers' Association (BBA).

The increase is similar to the rise recorded in January. Furthermore, over 44,000 small businesses established a new banking relationship in February.

The level of deposits only changed marginally, which the BBA said reflected the slow trading environment many businesses are facing.

David Dooks, statistics director, acknowledged the improving figures, noting they had been achieved despite the current recession and regular reports of difficult business conditions.