RTTNews - U.K. banks increased lending to small businesses in June, data released by the British Bankers' Association showed Monday.

Lending to small businesses rose GBP 391 million in June, the report showed. Deposits from small business grew by GBP 577 million.

BBA Statistics Director David Dooks said, These figures provide more evidence of the high street banks' support for small businesses.

Structured term lending rose GBP 366 million in June, while deposits and numbers of new business relationships continued to hold up, perhaps reflecting improved business confidence in trading conditions, the BBA said.

U.K. Chancellor Alistair Darling on Sunday told the BBC news that he is extremely concerned about the charges banks taking on loans to small firms. He said the cost of loans seemed to have risen, despite the U.K.'s record low base interest rate of 0.5%.

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