Small businesses are likely to be hit hard as overall bank lending contracts for the first time since 2009, according to new forecasts. Meanwhile increasing numbers of consumers are expected to turn to pay-day loans as lending by banks and building societies contracts. Total bank loans are expected to contract by 2.2 per cent this year, according to the Ernst & Young ITEM Club Outlook for financial services, after expanding by an estimated 4.3 per cent in 2011. Lending is predicted to grow by just 0.9 per cent in 2013. Small and medium-sized businesses could find it particularly difficult to obtain loans as banks try to reduce credit risk, affecting UK growth prospects....Read more here--: UK bank lending 'to contract for the first time since 2009' while pay-day loans soar