Credit: Just what is going on?

So just who is telling the truth on credit availability?

The FICO/EFMA European Credit Risk Outlook report, released yesterday, shows that a “credit gap” looms for small European businesses in 2012.

Looking over the next six months, 31 per cent of respondents in the FICO/EFMA report forecast that the aggregate amount of credit requested by small businesses will increase, while just 13 per cent say the amount of credit extended will increase.

That is the widest credit gap for small businesses in the past 12 months.

In most European countries, it seems that the economic climate is going to shrink consumers’ and small businesses’ demand for credit.

But according to FICO, supply of credit will continue to fall faster than demand.

Contrast the findings of that report with the party line from the British Bankers Association.

"SMEs are paying back more than the new borrowing they are taking. Deposits held on accounts are also higher than loans outstanding. All of this means that, while banks have funds to lend, demand for business credit is low."

So there you have it. Banks claim that demand for credit is low so that they may not meet their Merlin lending targets; small firms say they are struggling to access finance.

The chances are that both supply and demand of credit are both in decline. But crucially, the supply of credit is shrinking faster than the demand for loans. We all know what will mean for any chance of economic growth. As for any prospect of a fall in unemployment if things remain as they are: forget it.

Photograph: Getty Images

Douglas Blakey is the editor of Retail Banker International

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Could Jeremy Corbyn still be excluded from the leadership race? The High Court will rule today

Labour donor Michael Foster has applied for a judgement. 

If you thought Labour's National Executive Committee's decision to let Jeremy Corbyn automatically run again for leader was the end of it, think again. 

Today, the High Court will decide whether the NEC made the right judgement - or if Corbyn should have been forced to seek nominations from 51 MPs, which would effectively block him from the ballot.

The legal challenge is brought by Michael Foster, a Labour donor and former parliamentary candidate. Corbyn is listed as one of the defendants.

Before the NEC decision, both Corbyn's team and the rebel MPs sought legal advice.

Foster has maintained he is simply seeking the views of experts. 

Nevertheless, he has clashed with Corbyn before. He heckled the Labour leader, whose party has been racked with anti-Semitism scandals, at a Labour Friends of Israel event in September 2015, where he demanded: "Say the word Israel."

But should the judge decide in favour of Foster, would the Labour leadership challenge really be over?

Dr Peter Catterall, a reader in history at Westminster University and a specialist in opposition studies, doesn't think so. He said: "The Labour party is a private institution, so unless they are actually breaking the law, it seems to me it is about how you interpret the rules of the party."

Corbyn's bid to be personally mentioned on the ballot paper was a smart move, he said, and the High Court's decision is unlikely to heal wounds.

 "You have to ask yourself, what is the point of doing this? What does success look like?" he said. "Will it simply reinforce the idea that Mr Corbyn is being made a martyr by people who are out to get him?"