BANKS in Guernsey are bucking the UK trend and still lending to companies, the business community has confirmed.

UK Chancellor Alistair Darling spoke yesterday of his concern at the difficulty small businesses were facing in securing loans.

He urged banks to offer business loans at a cheaper rate and, while there was recognition locally that pricing has changed, commentators believe Guernsey banks are still lending.

Tony Brassell (pictured) of the Guernsey Enterprise Agency said he was not aware of any credit problems for local companies.

‘We have not experienced any issues involving numbers of clients telling us that they have been refused or even had problems in securing funds from their banks,’ he said.

‘As far as we are aware the banks have continued to lend to start-ups and local businesses throughout the current economic downturn. As long as the business case is good and well presented, people have been able to count on the support of their banks.’

Confederation of Guernsey Industry chairman Peter Budwin confirmed none of its members had complained about a lack of lending or asked for help.

And Mike Starkey, committee member of the Association of Guernsey Banks, said the difficulties faced in Guernsey were not as severe as in the UK.

He assured businesses that banks were still lending but said companies needed to acknowledge that rates had changed because of the economic climate.