Monday, 3 June 2013

Banks continue to cut lending

Source BBC News@ tienganhvui.com


Bank of EnglandThe Bank of England said lending continued to fall


Banks in the UK have continued to reduce the amount they lend out, in spite of government attempts to reverse the trend.


Latest figures from the Bank of England show that net lending fell by £300m in the first three months of 2013.


However, the figure is a big improvement on the previous quarter, when lending fell by £2.4bn.


The government's Funding for Lending Scheme (FLS), which launched last August, was designed to boost lending.


Under the scheme, banks and building societies are allowed to borrow money cheaply from the Bank of England, providing they pass that money on to individuals or businesses.


FLS was recently extended by a year, until January 2015.





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