§ Mr. Cohenasked the Chancellor of the Exchequer whether the Bank of England and the London and Scottish clearing banks have completed the exploration of possible constraints on medium-term lending to industry to which he referred in his Budget speech.
§ Mr. Denzil DaviesThis exploration has been completed, and has shown that prudential liquidity considerations are594W not at present inhibiting medium-term lending to industry, and it is not expected that they will constrain expansion of this type of lending in the foreseeable future. However, the subject will be kept under review in the course of the regular discussions which take place between the Bank and the London and Scottish clearing banks, so that any prospective problem over this can be identified in good time.