U.K. banks drew down GBP 4.4 billion from the central bank's Funding for Lending Scheme, first data on the use of the FLS published by the Bank of England showed Monday.
In the quarter ending September, there were 35 groups participating in the scheme, which cover just over 80 percent of the stock of lending to the real economy.
Nonetheless, two months after the scheme was launched, banks and building societies raised their net lending by only GBP 496 million, the report showed.
"Since the scheme was announced we have seen widespread falls in funding costs across different sources and an equally wide variety of lending rate reductions," Paul Fisher, Executive Director for Markets at the Bank of England said.
But Fisher cautioned that it is too early to use these data as a reliable indication of the impact of the FLS on lending volumes.
by RTT Staff Writer
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