LONDON (MNI) – The net monthly flow of lending to UK business moved
back into positive territory in November, but lending growth was
negative on a 12-month basis.
The Bank of England data highlight the underlying weakness of
lending. The net monthly flow in November was Stg1.8 billion, up from
-Stg0.2 billion in October, but the 12-month growth rate only edged up
to -2.1% from -2.3% in November.
The stock of lending to small and medium-sized businesses continued
to contract, the BOE said.
The stock of lending rose by around Stg0.4 billion in the three
months to November, and the three month annualised growth rate stood at
0.3%.
The government has launched initiatives to try and boost lending
to SMEs, but it is an uphill struggle.
The BOE said preliminary results from its new data “indicate that
the stock of lending to SMEs contracted between end-April and
end-November 2011.”
–London Bureau; Tel: +442078627491; email: drobinson@marketnews.com
[TOPICS: M$$BE$,M$B$$$,MABDS$]
