§ Mr. Austin Mitchellasked the Chancellor of the Exchequer what proportion of bank lending went to (a) manufacturing industry, other than food etc., (b) distribution, and (c) private persons in each year from 1952 onwards and in each quarter from the beginning of 1976; and in which periods there was qualitative or quantitive control over the distribution of bank lending.
§ Mr. LawsonThe available information on the growth of bank lending in particular periods is in net terms; thus in some periods, when repayments are greater than new loans, the change in net lending is negative. This makes it preferable to give information, as below, on outstanding net advances to United Kingdom residents.
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Manufacturing less food, drink and tobacco Distribution Private persons* Other groups1 1978— First quarter … … … 21 10 13 56 Second quarter … … … 20 11 13 56 Third quarter … … … 21 11 13 55 Fourth quarter … … … 21 11 14 54 1979— First quarter … … … 22 11 14 53 Second quarter … … … 22 11 14 53 Third quarter … … … 22 11 15 52 Fourth quarter … … … 22 11 15 52 Sources: Bank of England Statistical abstracts Number 1 1970 Table 11/1. Number 2 1975 Table 10/4. Financial Statistics Table 6.19 latterly, Table 6.17. * Includes loans for house purchase. †Includes mainly food, drink, tobacco, mining and quarrying, agriculture and fishing, construction, financial institutions including property companies, general government and public utilities. Notes on Table: 1. The annual figures relate to mid-November. Those for quarters relate respectively to mid-February, May, August and November. This is the only basis upon which the information is available. 2. The figures up to 1966 are based on information from the British Bankers' Association. 3. The figures from 1967 are based so far as is possible on the Standard Industrial Classification and the coverage extended beyond the membership of the British Bankers' Association to include all banks operating in Great Britain. 4. The figures from 1975 are on a different basis from earlier figures because of a change in the system of collecting information from banks. 5. The table does not include lending by banks on bills and acceptances. An industrial breakdown of this form of lending is only available for 1976 first quarter onwards. The inclusion of this form of lending with advances makes a little difference to the percentages, as is shown in the following figures for 1979.
PERCENTAGE OF OUTSTANDING BANK ADVANCES AND ACCEPTANCES ACCOUNTED FOR BY VARIOUS GROUPS Manufacturing less food, drink and tobacco Distribution Private persons Other groups 1979— First quarter … … … 22 12 13 53 Second quarter … … … 23 12 13 52 Third quarter … … … 23 11 13 53 Fourth quarter … … … 23 12 14 51 The form of guidance given to the banks over the distribution of bank lending has varied over the period. It has generally taken the form of requests to the banks to give priority, within the bounds of banking prudence, to requests for finance for particular purposes, e.g. for exports, and to exercise restraint on lending for other purposes or to particular sectors, e.g. for purely financial transactions or to persons. Such guidance has been outstanding for most of the period since 1952. Exceptions are the periods between February 1959 and July 1961, October 1962 and December 1964, and September 1971 and August 1972.
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