British Lenders Halt Commercial Real Estate Activity

10713_uk_pound British Lenders Halt Commercial Real Estate Activity The British banking units of National Australia Bank Group have announced that they are suspending new commercial real estate lending activity.

BBC News reports the Clydesdale Bank and its Yorkshire Banks subsidiary will continue to provide support for their existing commercial lending customers, and they will also continue to provide residential mortgages. Clydesdale issued a statement blaming the current British economic climate for the decision.

‘While our new lending to businesses increased by over 7 billion British pounds in the past two years, we have been clear for some time about our reduced appetite for new commercial property lending and have sensibly introduced tighter controls in this area,’ said Clydesdale in its statement. ‘Many commercial property businesses have elected not to extend their borrowing during the protracted economic uncertainty.’

Clydesdale also denied reports in the British media that it was planning to sell part of its 300 million British pound commercial loan portfolio, stating that the reports were ‘speculative.’ Earlier this week, National Australia Bank announced that it was allocating 300 million British pounds to Clydesdale from its own capital reserves.


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