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Lending rises as Bank plan starts

Lending to households and businesses increased slightly in the third quarter of the year as a new scheme began.

Lending to households and businesses increased slightly in the third quarter of the year as a new scheme began.

Banks took up £4.4bn in cheap funding from the Bank of England through the new Funding for Lending scheme.

However, overall, the banks have only increased their net lending by £496m and the major state-controlled lenders, RBS and Lloyds, lent less over the same period.

Hugh Pym reports.