THE recent reported upturn in the fortunes of the UK’s banking sector has not translated into the expected lending increase to business, a regional expert claims.

Despite the widespread announcements of a return to profit from the banks, little benefit is being felt by Worcestershire’s manufacturing sector, according to Simon Griffiths, head of the Manufacturing Advisory Service – West Midlands.

Working with companies across the county every day, Mr Griffiths said businesses are still facing major difficulties in accessing finance.

“While it is very good to hear the banking industry is slowly finding its feet, we are still receiving regular feedback from companies that are being hampered in their efforts to grow by a direct lack of lending,” he said.

Given that just about every indicator out there shows us emerging from the downturn this just seems plain nonsense, but this is what we are hearing loud and clear.”

Mr Griffiths added that although accessing finance from the banks was a challenge, there was a great deal more that could be done on both sides to encourage an increase in lending and investment in new products, processes and services.

He singled out the need for improved communication between banks and businesses to help each understand the others’ needs.

“Beyond that the re-introduction of local business bank managers, although controversial, could be of real benefit,” said Mr Griffiths.

“In the days of a local manager, he or she had such a good working relationship with their customers they could spot a winner when one came along.”