HSBC sets up 1bln fund for small businesses

HSBC has set up a one-billion-pound fund to help small- and medium-sized businesses in Britain get access to credit during the global financial crisis, the bank has said.

The initiative to help smaller businesses in Britain is part of a broader five-billion-dollar package (3.3-billion-pound) package to help firms of a similar size across the globe, the bank said.

The fund represents money "over and above" what HSBC would normally lend in the current business environment, and will be funded from its own resources, the bank said in a statement issued late on Sunday.

"This is a difficult time for business in many economies," said Michael Geoghegan, HSBC's Group CEO.

"Customers are rightly looking to see how banks can help. I am pleased that HSBC is using its financial strength to help our small business customers around the world by delivering this new five billion dollar fund.

"SMEs (small and medium enterprises) are the lifeblood of most economies and it is their success that will create economic growth."

HSBC has stressed throughout the global financial crisis that it is well capitalised and last month reported an increase in third quarter profits, despite a hefty exposure to the troubled United States housing market.