The most recent lending data from the Bank of England reveals that banks have managed to take a whopping £50bn out of many large UK firms and that small Companies are not getting loans easily in order to run their business.

Governor Mervyn King's says that credit situation is not improving much in the period of financial crisis. In the month of June, the net lending to Companies across all sectors has decreased significantly, as a result the second quarter results went down to £8.6 billion in the previous year.

During the period of July 2009 and June 2010, net lending tumbled down to minus £49.8 billion, which means that Companies are giving out more money than they are getting from banks.

The figures were quite good two years ago, which was around £85 billion.

According to Lord Oakeshott, Liberal Democrat Treasury spokesperson, bank lending loans to different businesses is an unending horror tale.

He further said that the justification the banks give is that large businesses are paying back the loans, but the question is if this is really happening, why they are reluctant to give loans to smaller firms.

The Bank of England data shows that giving loans to small organizations has decreased for the eighth quarter continuously.