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A Bank of England survey reports a sharp increase in business lending in August although levels are still down year on year. The "Trends in Lending" report also showed a stabilisation in mortgage approvals by major banks in September.
The survey is based on responses from Santander, Barclays, HSBC, Lloyds, Nationwide and RBS, with the lenders reporting they had made more credit available over the past three months, partly driven by an improvement in their own access to funds.
Despite the good headlines the report also found that the supply of credit remained tight, and that businesses had used funds raised on capital markets to repay bank debt.
Year-on-year, business lending was still 4.2 percent lower in August compared to 3.5 percent down in July.
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