Bank lending soared as coronavirus pandemic struck

More than a million businesses had applications approved for finance under emergency government credit schemes by the end of June
More than a million businesses had applications approved for finance under emergency government credit schemes by the end of June
JONATHAN BRADY/PA

Gross business lending between April and June this year was 50 per cent higher than the total recorded in all of 2019, new figures show.

Credit provision soared as more than a million businesses had applications approved for finance under emergency government credit schemes by the end of June, according to UK Finance, the banking industry trade body. Despite the impact of the Covid-19 pandemic, business deposits rose by 20 per cent in the second quarter compared with the start of the year.

UK Finance said that this was because of a reduction in operating expenses thanks to receipts from the coronavirus job retention scheme, which helped to pay the wages of furloughed staff, as well as a suspension of business rates for certain sectors