Banks failing – again?

OK so the bank bailout was essential but now it seems they are failing in their basic function – to provide liquidity.  After receiving billions in government funds the top five banks have only managed to lend £16.8bn to small/medium companies in the first three months of 2011.  (http://www.bbc.co.uk/news/business-13489884)  Whilst this dwarfs the total equity raised on exchanges in some countries (for example the ‘record’ £777m raised in Warsaw) this simply shows the size of the UK’ economy not the dynamism of British banking.  In perspective it is £2.2bn bellow what was targeted and required – can we expect to see this KPI failure reflected in lower bonuses – I doubt it.  But what is happening in banking?  We now have Moody’s threatening a downgrade if the government does not provide additional bailouts and a far from health economy (inflation, unemployment, growth) (http://www.guardian.co.uk/business/2011/may/24/uk-banks-face-ratings-downgrade-moodys)