SME lending down despite mortgage-free FLS

Mark Carney large
By Tom Porter
28 Aug 2014

The UK government’s Funding for Lending (FLS) scheme has turned in another set of disappointing net lending figures for small and medium sized enterprises in the second quarter of this year, Bank of England figures showed on Thursday. That is despite Q2 being the first full quarter since the central bank revamped the scheme to discount mortgage lending in a bid to focus more heavily on businesses.

Net SME lending fell by £435m between April and June this year, following a £719m decline in the previous quarter, the BoE’s release showed. Net lending to large corporates fell by just under £3.5bn.

BoE governor Mark Carney announced in November the mortgage proportion of the controversial scheme ...

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