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The MPs said net lending by banks using the Funding for Lending scheme had fallen by £2.3bn since June 2012.
Lower reserve requirements effectively free up more lending by banks.
But banks have slashed business lending by £85 billion.
In effect, lending by banks must be labelled as such.
Some think this relates to iffy lending by Countrywide.
The remaining, healthier banks cut new lending by 6 percent.
Yet concerns remain about overly aggressive lending by state-run banks.
Nevertheless lending by the big city banks has still to recover.
In the same month banks cut business lending by £2.4 billion (see chart).
Lending by Chinese banks jumped 32.5 percent in 2009 in inflation-adjusted terms.
To quell inflation, China's monetary authorities have tightened lending by banks and trust companies.
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