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News - 9 August 2009
Bank loans to businesses down by £14.7bn
Figures from the Bank of England have shown that bank loans to non-financial sector businesses (other banks, insurance companies etc) were down by £14.7bn in the quarter ended June 2009. The largest reduction in 12 years.
The breakdown shows lending to retailer and wholesalers down by £6.3bn, to manufacturing firms by £4.5bn, to business services firms (legal, accountancy etc) by £2.7bn and £2.1bn to construction.
Analysts are optimistic that the recent, unexpected £50bn increase in quantitive easing and 0.5% interest rates will feed through to bank lending to small firms.
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Bank of England