Britain considers monitoring bank lending

LONDON, Nov. 28 (UPI) -- The British Treasury said it was considering emergency steps to ensure banks are making loans to consumers and small businesses.

The Treasury said it was not "actively considering," emergency measures, but has mandated banks open their books to prove lending is improving, The Daily Telegraph reported Friday.

The Treasury is also considering radical steps "up to and including nationalization," sources told the newspaper.

Another measure under consideration is for the government to impose a cap on interest rates, setting them at rates one percent or two percent above the banks' lending rates.

Barclay's has said its lending is up 10 percent. Lloyds TSB said its lending has risen 18 percent, but small businesses are still complaining that loans are difficult to get, the newspaper said.

"As the Chancellor (of the Exchequer Alistair Darling) has said, we are closely monitoring the commitments made by banks to support new business lending and ensure customers are treated fairly and decently," a Treasury spokesman said.

"The government is ready and willing and it will hold banks to account," Darling said this week.