Carney encouraged to boost lending for small businesses

The news demonstrates the tough challenge the Bank of England governor faces, and comes despite government initiatives such as the Funding for Lending scheme (FLS) aimed at boosting lending to entrepreneurs.

As Carney begins his job, the British Chambers of Commerce sent an open letter calling on him to do more to support UK businesses.

Among the demands is efforts to make the government's new Business Bank "a major new player in SME finance". The letter said: "We are struck by the success and importance of the Business Development Bank of Canada in your native country, and hope that you can help the Business Bank to develop a similar vision and remit."

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