A BANK has pledged to increase its lending to small and medium-sized enterprises (SMEs) in Keighley and across the region.

CYBG – owner of Clydesdale and Yorkshire Bank – made the announcement despite research showing that borrowing confidence in the region has dropped, reflecting a national trend.

Last year, the company loaned £305 million to SMEs in Yorkshire.

And it is on course to meet a regional three-year lending target of £900 million – and £6 billion across the UK

Gavin Opperman, the group customer banking director at CYBG, said: "We all know that SMEs feel it's more difficult to get access to finance these days, and in the current economic environment small firms are long overdue a confidence boost.

"I'm delighted we have more than matched the first year of our commitment to lend SMEs nationally £6bn over three years, with well over £2bn distributed last year alone.

"I'm especially pleased we have met or surpassed all our regional commitments.

"Through this programme, we will continue to support the innovation, creativity and growth plans of small and medium-sized enterprises."

Paul Wainwright, a CYBG head of customer banking in the region, said the figures were "hugely exciting".

He added: "We are delighted to be supporting SMEs in Yorkshire with this significant focus on lending.

"Expanding here is a natural extension of our existing business – it's a market that's growing significantly.

"Given our heritage in the region, these lending figures are another hugely exciting milestone on this journey."

The £305m loaned to the region's SMEs last year was £5m ahead of the bank's target.

The success comes despite the research findings showing that a fifth of Yorkshire SMEs struggle to access finance, acting as a barrier for growth.

An SME health check index has hit its lowest level since 2014.

Falls in confidence during the past year or so have been attributed partly to the result of the EU referendum in June, 2016, and the ongoing Brexit negotiations.

And evidence of firms delaying investment decisions remains a concern.

However CYBG says its lending commitments have been achieved or increased in all UK regions against last year's targets, with figures ranging from £100m to £400m.

More than 90 per cent of its lending is focused on the regions, rather than London.

West Yorkshire companies to benefit recently include wind energy firm Whirlwind Renewables, which in February was provided with a £20m-plus finance package.

The funding is supporting a growth strategy which includes a project to build a wind farm in the Scottish Highlands.

The research also found that of SMEs which would like to borrow on average £100,000 over the next six to 12 months, 47 per cent would use the money to hire new staff and a third would plough it into their working capital.Twenty-eight per cent planned to make acquisitions with the help of the money.