§ Mr. Moonmanasked the Chancellor of the Exchequer whether he is satisfied with the recent extent and pattern of bank lending.
§ Mr. HealeyThe figures for banking-October show a continued growth of bank lending to the private sector at a level which is inconsistent with my objectives for the growth of the money supply. Further monetary restraint is therefore necessary. Accordingly, the Bank of England, with my approval, is reactivating the Supplementary Special Deposit Scheme, under which a guideline is set for the growth of each bank's sterling interest bearing eligible liabilities, and a bank is required to pay such deposits if it exceeds that guideline.
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§ Mr. BishopThe information requested is as follows:
The existing guidance to banks on the direction of their lending remains in force, so that manufacturing industry should continue to be able to satisfy its needs for funds for investment and exports. The scope for banks to meet the essential needs of industry within the guideline will be increased by the rundown of their sterling advances to finance third country trade, following the exchange control ban on such advances which is also being announced today.