Bank lending still falling despite Funding for Lending

Bank lending in the UK has continued to fall, despite government attempts to reverse the trend through its Funding for Lending Scheme (FLS), data from the Bank of England has shown.

Net lending fell £300m in the first quarter of 2013, compared to a £2.4bn fall in the previous quarter. Lending to individuals was up, improving mortgage rates for home-buyers, but loans to businesses were down.

The Bank said that banks taking part in FLS would make more loans available later this year.

Hugh Pym reports.