§ 62. Mr. Grantasked the Chancellor of the Exchequer what instructions have been given to banks concerning the granting of credit facilities; and if he will make a statement on their effect.
§ Mr. CallaghanThe banks have been asked to keep their lending to the private sector to 105 per cent. of the level at March, 1965, until further review. In addition they have been asked to give the fullest possible facilities to exports and productive investment by manufacturing industry: to take account of the Government's aims on regional development: and to restrict credit for less essential purposes including imports of manufactured goods for home consumption and imports for stockbuilding.
By mid-May 1966 London Clearing Bank advances were 4½ per cent, up on March, 1965. In the twelve months to May advances to manufacturing industry rose by £250 million, but fell by £75 million to less essential categories.