16:56 04 March 2013
The Bank of England has said that lending has fallen with regards to the final three months of 2012. In a report by the BBC this figure is quoted as £2.4billion, whereas The Guardian report that the net lending has dipped by £2.7billion.
The announcement comes despite the Funding for Lending Scheme (FLS)having been set up.
The Bank of England (BoE) said: “Some banks are reducing parts of their lending activities, consistent with the continued adjustment of their business models in the wake of the financial crisis, or responding to state aid conditions.”
The BoE added that it “takes time” in order to “reduced funding costs to feed through to lending volumes” in regards to the procedure surrounding loans.
Some individuals think that more can be done when it comes to this area of investments, in particular Ed Balls, the Shadow Chancellor, reportedly calls for action over boosting lending in order to help the UK’s economy.
The FLS, which began in August last year, aims to help Britain’s financial situation by addressing the topic of lending. The idea is also that, as part of the process UK citizens are able to benefit from better borrowing rates.
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