Lending scheme continues to disappoint
4th March 2013
·British banks and building societies drew down £9.
5bn in Q4 2012 from the Funding for Lending Scheme. ·Net lending decreased by £2.4bn in Q4 2012. Commenting on the latest figures on the Funding for Lending Scheme (FLS), Dr Adam Marshall, Director of Policy and External Affairs at the British Chambers of Commerce (BCC) said: "Although the fourth quarter is typically a subdued period for lending, the latest update is clearly disappointing, with net lending contracting in the final three months of 2012. The real test for the FLS has always been whether the funding reaches fast-growing and new firms, and unfortunately the latest Bank of England Credit Conditions Survey confirmed that small firms continue to be left out in the cold." "Against this backdrop, it is clear that the journey of the Business Bank from the drawing board to the real world must begin in earnest, as this would be a game changer for young companies looking to expand and drive the recovery."