UK banks' lending to small businesses up in June

Lending to British small businesses rose by £391 million ($646) in June, indicating that banks are providing additional support for companies in the recession, the British Bankers' Association (BBA) said.

"These figures provide more evidence of the High Street banks' support for small businesses," BBA Statistics Director David Dooks said in a statement on Monday.

"Structured lending rose by £366m in June, while deposits and numbers of new business relationships continued to hold up, perhaps reflecting improved business confidence in trading conditions."

June's figure, which is made up of structured lending and an additional £25m in overdrafts, show a jump from May, when total lending increased by £153m month-on-month.

Deposits from small businesses grew by £577m on May's total, the BBA said.

Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland were among the banks contributing to the survey.