Banks reluctant to lend to small firms - governmen

By David Milliken LONDON (Reuters) - Britain's banks are less willing than before the financial crisis to take the risk of lending to small businesses, a government-commissioned research report said on Friday. Small business lending is a sensitive political topic in Britain. The Bank of England and politicians say a lack of bank lending is part of the reason for the country's very slow recovery from the financial crisis. Banks say that weak lending growth is largely due to firms' unwillingness to invest in an uncertain economic climate, not a reluctance to lend on their part. ...