After falling for a decade, net lending by banks started to rise again this year.
"Despite scheme after scheme — from the failed Project Merlin deal with the banks to credit easing and now Funding for Lending — net lending to businesses has fallen month by month under this government," he said.
Its share of new mortgage lending rose to 15.4% from 14.4% a year earlier, while net lending – loans, less repayments – went up 75% to £5.6bn, giving it an 81.8% share.
Yet analysis by Oliver Wyman, a consultancy, suggests that net lending by American banks, for example, has contracted by amounts that are broadly in line with previous recessions, when demand for credit naturally diminishes and lending standards inevitably tighten.
Half-year results from Nationwide building society added to the gathering evidence of a weakening market, with net lending down by £2bn to £3.6bn in the six months to 30 September – although lending to landlords rose slightly.
Half year results from Nationwide building society this morning also added to the gathering evidence of a weakening market, with net lending down by £2bn to £3.6bn in the six months to 30 September.
The bank's latest Global Development Finance report predicts that an increase of ten basis points in the gap between the London Interbank-Offered Rate (LIBOR) and the overnight indexed-swap (OIS) rate, sustained over a quarter, should cause net lending to developing countries to drop by up to 3%.
Lloyds said its core lending was 1% higher, largely boosted by a 5% jump in net lending to small and medium-sized businesses.
The Asian developing countries ran a combined current account surplus (net lending to the rest of the world) of $38.3 billion in 2000, while the United States ran a whopping current account deficit of $417.4 billion.
The household and corporate sectors provide the majority of the offsetting change, with household net lending moving from a deficit of 1.2% of GDP in 2014 to a larger deficit of 3.7% of GDP in 2018".
