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Bank of England reports £28.6bn rise in March loans

The amount of money being loaned out by financial firms during March rose by £28.6bn, data from the Bank of England reveals.

The latest statistical release from the Bank shows that the amount being dealt out in loans – known as M4 lending – increased by 1.2% in March.

M4 lending minus the effects of securitisations also climbed by £29.4bn last month.

The money supply, otherwise known as M4, went up by £0.9bn, but remains down on the average over the last six months of £33.8bn.

The Bank suggests that repo and reverse repo activity, where a firm borrows against financial securities in a similar way to a secured loan, had a role to play in the latest figures.

Banks’ and building societies’ repo and reverse repo activity with other financial companies had a negative impact on the broad money supply and credit in March.

But the central bank says this was offset by a growth in deposit and lending business between banks, financial companies, and securitisation vehicles part of the same group.


Financial advice service starts face-to-face pilot

Moneymadeclear, the web-based financial guidance service from the Treasury and the Financial Services Authority, is piloting a face-to-face and telephone service in northern England.

Uncertain about auctions

I’m still making my mind up about the US auction house that has graced our shores in the past month. Real Estate Disposition Corporation – usually known as REDC – specialises in repossessed properties. Nothing wrong with that but rather than sellers, i.e. lenders, being charged the average 2% to 3% UK fee, buyers pay 10% of the purchase price to REDC. And that’s the bit I’m not sure about.


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