Bank lending falls

British banks' lending fell to pounds 1.3bn in the second quarter from pounds 3.8bn in the first three months. Mortgage lending fell from pounds 2bn to pounds 1.6bn, although lending for consumption rose for the first quarter since the start of 1993.

Combined bank and building society mortgage lending declined from pounds 5.6bn to pounds 4.9bn, according to Bank of England figures. Industrial and commercial companies repaid borrowings for the sixth successive quarter, with an unchanged repayment of pounds 1.1bn between April and June.