Lending to the economy is no more attractive business for the British banks. The issued loans within the frame of the Funding Lending Scheme dropped by ₤300 mln in the first quarter of 2013. In accordance with the Bank of England, the major banks and building associations as the program participants have cut the budget of their credit offers. This lowering started in the fourth quarter of 2012, when the amount of allocated money fell by ₤2.4 bln. At that time, RBS and Lloyds reduced their net lending by ₤1.6 bln and ₤983 mln correspondingly. Meanwhile, Santander, the third largest bank in the United Kingdom, trimmed the funding volume by ₤2.3 bln. According to the complex financial reports of the Bank of England economists, the sum of ₤16.5 billion has been drawn since the financing program launch. The country's government has no doubt that the lack of lending is one of the main problems obstructing the economic stabilization. In spring ,the program conditions were modified in order to arouse the lenders' interest. The leading British economists are sure that the successful project realization needs some time. As for the slump in lending, it is just temporary.
