UK lenders are seeing “very big volumes” of applications for the government’s newly launched Bounce Back Loan Scheme, and they’re bracing themselves for more.

In a 4 May evidence session before the Treasury Committee, which is examining the economic impact of Covid-19, senior executives from Lloyds TSB, NatWest Group, Barclays Bank, HSBC and challenger bank Starling said they are seeing thousands of applications, just a week after the new scheme was launched on 27 April.