Of the 39 lenders which have signed up for the Bank's Funding for Lending Scheme (FLS), two thirds are mutual lenders, primarily building societies. Five mutuals had drawn £2.3 billion of funds from the FLS by the end of 2012, 17% of the total amount drawn. However, during Q4 many of the mutual lenders who have signed up for the scheme were finalising the processes for drawing funds, and are likely to do so before it closes next year.
Commenting, Paul Broadhead, Head of Mortgage Policy at the Building Societies Association said: "The data shows that the mutual lenders which have signed up for the scheme increased their 'certified' lending to the real economy by just over £5 billion in the second half of 2012. In comparison, in the same period, other participating lenders reduced their stock of such loans by £6.5 billion. Today's figures from the Bank of England indicate that mutuals will continue to play an important role in lending to the real economy in the year ahead."
Notes to Editors:
The Bank of England usage data can be viewed here: http://www.bankofengland.co.uk/markets/Pages/FLS/data.aspx
'Certified' lending is the FLS measure of lending, and covers sterling loans to households and private non-financial corporations (PNFCs).
BSA monthly lending data for January shows an increase year on year for January 2013: http://www.bsa.org.uk/mediacentre/press/monthlystats_jan13.htm
Contact: Hilary McVitty, Head of External Affairs - email@example.com / 020 7520 5926
Policy and External Affairs Officer
Building Societies Association
6th Floor, York House