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Business of the House

One reason why we ensured that we had lending agreements with banks was that it was very important for banks to lend out into the economy, to individuals for mortgages and to businesses. More money is being lent. The reason why the overall lending figures appear to be lower is that more money is being paid back, so the net lending figure is smaller than the gross lending figure. That is a good sign, and it has come about because interest rates are still low. However, we keep a hawk eye on the lending practices of the banks. They are there not to pay bonuses to the fat cats at the top, but to lend out to businesses and the housing market, which needs finance.