Lending to small businesses increased by over Ј1.2 billion (3.1%) in the third quarter of 2001 to Ј41.4 billion. This followed the previous quarter’s very small rise and reflected rises of Ј0.9 billion in term lending and Ј0.4 billion in overdraft borrowing. Increased term lending was more than accounted for by variable rate loans, with fixed rate loans decreasing for the second successive quarter, suggesting the anticipation of interest rates continuing to fall.
The second quarter saw an increase of almost 41,300 in the total number of current and deposit accounts for small businesses, the largest rise since the second quarter of 1999, while the level of deposits increased, for the sixth consecutive quarter, by Ј0.6 billion, to Ј43.4 billion.
Almost 390,000 small businesses, around 13%, are now using on-line banking facilities and this figure is expanding, with an extra 38,000 in the last quarter alone.
