Project Merlin, has been finally joined in by the four largest banks in UK. These are the HSBC, Barclays, RBS and Lloyds and the information was given by George Osborne to the House of the Commons.

If the project is able to rebuild the bank's relationship with the society, then its objective will be solved and that it is certainly going to be a good news. But there are stipulations in it that may make it unattractive.

One of these stipulations is that the banks will have to lend close to £190 billion to SMEs this year. And another £ 76 billion should be given to smaller businesses alone.

The logic behind this is that SME lending, in particular, is quite necessary for the economy just now. Moreover, the banks will be able to make profit only when they increase their scope of lending. Higher risk does come but that is what has to be taken care of.

Till now, the banks had been running away from this kind of responsibility and have been following a rather relaxed approach. But now, they need to gear up and look for untouched frontiers. It is imperative since financial meltdown has impacted the systems badly.