Bank lending deal for small businesses 'stalls' - papers

The plan, known as Project Merlin, was expected to have resulted in an announcement this week but negotiations will now continue, writes the BBC. About £200bn in loans to firms was to have been made available in 2011. The stumbling block is thought to have concerned governance issues. Bank bosses argue lending targets for what might be weaker businesses could breach rules that say any decision should be in the best interest of shareholders. They also say the banks' ability to lend to companies and consumers may be restricted if some of the ideas from the Independent Commission o...