The UK did worse than almost every other developed economy from 2007-2012 but has been among the best performers since the start of 2013. Slightly out-of-date chart via the Reserve Bank of Australia:
What gives? According to a new analysis from Goldman, this demonstrates both the damage to the UK’s banking system after the crisis and the subsequent power of credit easing, specifically the magic that was worked on bank credit spreads after Mario Draghi uttered his priestly incantation in July, 2012: Read more
We continue to be utterly bemused by this Bank of England support facility. Here’s net lending to UK businesses and “non-bank credit providers” by FLS extension participants in Q1…
Declaring victory by press release on Thursday, the Bank of England announced that it will re-focus its funding for lending scheme towards small businesses next year.
The current scheme expires at the end of January, and a day after the ECB floated its own funding-for-lending trial balloon, the UK central bank has said that it will carry on, but “with incentives in the scheme skewed heavily towards lending to small and medium-sized enterprises (SMEs).”
Major thanks also to the housing market boom (our emphasis): Read more
The question mark in the header is just so as to (reluctantly) give the Bank of England the benefit of the doubt.
Here are the latest stats on the Funding for Lending Scheme, which was supposed to pump £100bn into households and businesses in the UK. Six months in, £13.8bn has been drawn down by British banks, £9.5bn of that coming in the final quarter of 2012. Read more
The Bank of England has published the first data from its new-fangled Funding for Lending Scheme. At first blush, the numbers look pathetic: net lending grew a paltry £500m in the three months to end-September, while total drawdowns from the FLS amounted to £4.5bn, against a potential pot of £100bn.
But that would be us jumping to conclusions, prematurely. As the Bank says: Read more