A scheme aimed at boosting credit to households and businesses has so far failed to get banks and building societies to lend more, figures showed today.
The Bank of England said net lending in the quarter to December 31 fell by £2.4 billion on the previous quarter, despite participants of the Bank of England's Funding for Lending (FLS) scheme drawing down another £9.5 billion over the period.
– Director at Scotiabank Alan Clarke
It is not entirely unexpected that lending has gone down. The Bank would say that this is not a bad thing, in the absence of the FLS, lending might have fallen even more.