London (MNI) – Credit availability for small and medium sized
enterprises is expected to be little changed in the fourth quarter,
according to a report from the Bank of England.
The BOE’s Trends in Lending survey analysed SME credit
availability. It said that in the third quarter credit availability was
little changed for medium-sized companies and rose only slightly for
small businesses, and things are not expected to change much for either
group in Q4.
The Treasury is spearheading work to try and come up with measure
to improve credit supply to SMEs, and it is expected to unveil plans in
the Autumn Budget Statement. The BOE’s analysis highlighted the problems
for smaller companies, with its detailed, backdated data showing the
stock of lending to SMEs fell in the three months through August.
The BOE cited Bank for International Settlements figures which
showed that growth rates of the stock of lending to SMEs have
deteriorated. The annual growth rate for the SME lending stock was -5%
in August 2011.
The BOE’s August data show the three month annualised growth rate
in lending to UK business was down 2.1% and the 12-month rate down 3.3%.
Secured lending to households has proven more resilient. In the
three months through August secured lending to individuals rose 0.4% on
an annualised basis.
The report said total consumer credit flows were positive in the
three months to August, though remained subdued, with a 2.5% three month
annualised growth rate in August.
–London newsroom: 4420 7862 7491 email: ukeditorial@marketnews.com
[TOPICS: M$$BE$,MABDS$]
