Bank credit grows popular again with big British firms

More large companies in Britain see banks as an attractive source of credit than ever before in the past five years, a positive sign for the country’s economic recovery.

According to a survey from professional services firm Deloitte, 67 per cent of chief financial officers see bank loans as an attractive method of financing, the highest level since the survey started in the third quarter of 2007.

Industry commentators have said that a lack of bank lending is part of the reason for Britain’s slow recovery from the economic downturn.

“Reduced stress in financial markets, especially in the euro area, has delivered improvements in credit conditions for big UK corporates,” said Ian Stewart, chief economist at Deloitte.

“It is a measure of the change that CFOs now rate bank borrowing as offering a more attractive form of finance than at any time since the start of the financial crisis.”