Independent report

Alternative models of commercial finance on the UK economy: research on economic impacts

Econometric research by NIESR on the effect of alternative systems of commercial finance on lending to businesses, investment, and gross domestic product (GDP).

• From: Department for Business and Trade
• Published: 22 January 2026

Documents

Alternative models of commercial finance on the UK economy: research on economic impacts

PDF, 25.9 MB, 176 pages

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Details

This report by the National Institute of Economic and Social Research (NIESR) includes:

• a review of the literature and existing data on lending to businesses, incorporating international comparisons and new case study evidence
• a discussion of market failures affecting access to business finance in the UK, as well as potential solutions based on international examples
• the results of new econometric evidence where NIESR has estimated the microeconomic impacts (on lending to businesses and investment) as well as the macroeconomic impacts – this is based on the hypothetical option of UK businesses being able to access lending from alternative, continental-style banking models

Published 22 January 2026