Written question asked by Chuka Umunna (Labour) on Tuesday, 14 June 2011, in the House of Commons. It was due for an answer on Friday, 17 June 2011. It was answered by Justine Greening (Conservative) on Friday, 17 June 2011 on behalf of the Treasury.

Banks: Regulation

Question: (3) what role the Bank of England has in monitoring banks' performance against stretch targets under the Project Merlin agreement;

Answer: The Merlin commitment agreed with the banks is £190 billion of gross new lending facilities to UK corporates, including facilities of £76 billion to small and medium sized enterprises (SMEs). The banks will be judged against these published and agreed numbers. Figures published in May by the Bank of England show that the five banks participating in the Merlin lending accord agreed new lending facilities of £16.8 billion to UK SMEs in the first quarter of this year. The Bank of England will continue to report the banks' new lending facilities on a quarterly basis for the duration of the Merlin agreement.

Secondary information