Belfast Telegraph

Banks spell out warning over future lending plans

Banks made more credit available to households and small businesses this summer, but have warned the eurozone crisis may hit future lending.

Lenders said there was a slight increase in the availability of credit to households in the third quarter of 2011, according to a survey by the Bank of England.

Credit conditions for large and medium-sized businesses were stable, while there was a slight increase for small companies.

But banks warned "adverse wholesale funding conditions", most likely to be caused by the eurozone debt crisis, might constrain their ability to offer loans in the future.

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