LENDING TO SMEs FALLS

Figures from the BoE’s Funding for  Lending scheme have revealed that 34 banks and building societies using the credit facility withdrew £1.32bn of lending from SMEs between April and December 2013. The largest withdrawals were from RBS, which withdrew £2.2bn of credit, and Nationwide, which cut lending by £1.14bn. An RBS spokeswoman said its reduction in net lending to SMEs was due to its restructuring strategy as it runs down legacy assets. Meanwhile, the FLS data suggested that small challenger banks are beginning to fill the void. Aldermore lent £345m to small business, Shawbrook Bank £136m, OneSavings Bank £66m, and Yorkshire Building Society £45m. The largest single lender was Lloyds Banking Group, which extended £1.12bn to the sector, followed by Santander, which lent £447m.