Minimal growth in UK business lending
(14 April 2016 – United Kingdom) A recent survey by Britain’s central bank has shown that banks expected business lending would see its smallest increase in four years over the next quarter.
However, Bank of England (BoE) said credit accessibility to large companies “remains plentiful”. The survey also indicated declining demand for credit from businesses, though banks expected a rebound in smaller firms’ appetite to borrow.
Conversely, banks have indicated that retail lending to mortgage borrowers will increase in the same period, rising at its fastest rate in 18 months.
Britain’s relatively strong economic growth since 2013 has been driven mostly by the country’s consumers, frustrating hopes among policymakers for a more sustainable recovery led by business investment and exports.
The central bank said lenders also saw strong demand from prospective homeowners and that car dealers remained a growing source of loans.
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