Lloyds, Barclays, HSBC, Santander and Royal Bank of Scotland signed up to lending targets with the government designed to support the British economy. Their annual target stands at £76bn.
The banks are on track to meet their overall lending targets to UK businesses with £100.4bn in gross new lending during the first half of the year.
The British Bankers’ Association said the banks were committed to providing capacity of £190bn of gross new lending including £76bn for SMEs, available in 2011.
A spokesman for the Merlin banks, said: “The Merlin banks are on track to meet their business lending commitments. The first half year performance demonstrates the banks’ commitment to providing businesses with the financial support they need to invest and grow and the significant progress made this year.
"The bank’s efforts to encourage customers to come forward with borrowing proposals are set against the overall economic environment which remains challenging and business demand for credit which remains weak."
John Walker, national chairman at the Federation of Small Businesses, said: “While it looks like the banks are on course to meet their full year lending commitment, targets do not address the underlying problems in the banking sector where only a handful of banks control the majority of the market.
“With global economic and financial fears, it should not be about meeting targets but about genuinely helping businesses start-up, grow and invest to help to put the UK recovery onto firmer ground.
“In a recent FSB member survey, of the 20% of small firms that had applied for credit in the 12 months to June, a third have been refused. This has meant that growth opportunities have been missed or delayed for many businesses.
“The FSB is urging the Independent Commission on Banking to be bold in its recommendations to Government in September and to ensure that increasing competition in the sector is at the forefront of its report, without this, small firms will continue to get a rough deal."
