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Lloyds and HBOS 'will lend to SMEs'

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The newly merged Lloyds TSB and HBOS will continue lending to small firms, it has been claimed.

In a statement released by the financial institution, it reaffirmed its commitment to providing both domestic and commercial funding.

"New lending by the newly combined bank for both UK mortgages and SMEs will continue at least at current levels and will expand as market conditions improve," Lloyds TSB stated.

The merger between the two banks has been welcomed by the government which thinks it will help stabilise the UK's economy.

Earlier this week, David Kern, economic adviser to the British Chambers of Commerce, warned that a banking crisis would seriously damage businesses in the UK.

He called on the Bank of England to improve its special liquidity scheme to help address the situation.

Mr Kern also called on the body to cut interest rates in the near future to help kick start the economy.ADNFCR-873-ID-18788745-ADNFCR

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