Bank lending ‘to increase’, say Ernst & Young
BANKS are expected to boost lending to British companies for the first time in four years as their appetite for corporate risk returns following a “quiet” improvement to their balance sheets.
In its latest report on financial services, the Ernst & Young Item Club forecasts that lending to firms will grow by 3 per cent in 2013 to £440 billion, despite only a small effect from the Bank of England’s Funding for Lending (FLS) scheme.
The pace of growth is expected to accelerate in 2014, when business loan books are expected to grow by 8.5 per cent to £477bn.
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