The continued lack of credit in the UK economy could turn an ordinary but "fairly nasty" recession into something "much more severe", according to one sector commentator.
Jonathan Loynes, chief European economist at Capital Economics, said banks were still reluctant to lend which had led to a lack of available credit.
He added that it was "all very well" cutting the base rate of interest to zero and taking measures to increase the amount of money banks had at their disposal, but the most vital process was convincing or even forcing the sector to lend to the wider economy.
By doing this, businesses and households would be better able to operate in a normal way, Mr Loynes concluded.
According to the Office for National Statistics there has recently been a fall in both the number of people in employment and the employment rate.
Furthermore, growth in average earnings, both including and excluding bonuses, remains unchanged.
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