News Column

UK Bank Lending To Businesses Improves: BoE

July 18, 2014

LONDON (Alliance News) - UK net lending to businesses was positive in the three months to May, while mortgage approvals for house purchases declined, the Trends in Lending data released by the Bank of England showed Friday.

Lending to businesses increased in three months ended May, in contrast to a negative flow in the previous period, it said.

Nonetheless, the annual growth rate in lending to both small and medium-sized enterprises and large business remained negative.

Meanwhile, data revealed that mortgage approvals by all UK-resident mortgage lenders for house purchase fell, partly due to delays associated with operational requirements arising from the introduction of the Mortgage Market Review.

Gross secured lending in the three months to May was broadly similar to the previous period. At the same time, consumer credit flows were GBP 2.4 billion, higher than the previous period.

Spreads over reference rates on new lending were unchanged for small businesses, while it fell significantly for medium-sized and large businesses in the second quarter.

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Source: Alliance News

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