BoE: Lending to businesses drops in Q1

FXStreet (Łódź) - According to a report released jointly by the Bank of England and the UK Treasury today, showed that lending to businesses by banks participating in the Funding for Lending Scheme decreased by 2.78 billion pounds in the first quarter of the year. This was mostly due to a considerable drop in lending to the commercial real estate sector.

The FLS program, which kicked off in July 2012, allows financial institutions and building societies to borrow from the Bank of England at cheaper rates, in order to spur lending and boost access to credit for businesses.