Bank of England and HM Treasury Funding for Lending Scheme - 2015 Q3 usage and lending data

Oct 29, 2026

Bank of England and HM Treasury publish 2015 Q3 data on the Funding for Lending Scheme (FLS). The report details, for each FLS Extension group, the net quarterly lending flow to UK SMEs and non-bank credit providers, plus the amount borrowed from the Bank. It notes the number of extension participants, total drawdowns and repayments, and resulting outstanding drawings. It also summarizes survey evidence on improving SME credit conditions and explains how the 2015 two-year extension phases out borrowing allowances over time.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages3

Reading Time8 min

AccessFree to download

Background and publication scope

Net lending flows to SMEs and non-bank credit providers

Participant drawdowns, repayments, and outstanding drawings

Credit conditions evidence and comparisons

Extension announcement and phasing out of allowances

Press Office Threadneedle Street London EC2R 8AH T 020 7601 4411 F 020 7601 5460 [press@bankofengland.co.uk](press@bankofengland.co.uk)[ ](press@bankofengland.co.uk)[www.bankofengland.co.uk](www.bankofengland.co.uk) 3 December 2015 Bank of England and HM Treasury Funding for Lending Scheme – 2015 Q3 usage and lending data The Bank has today published data on the use of the Funding for Lending Scheme (FLS) showing, for each group participating in the FLS Extension, the net quarterly flow of lending to UK small and medium-sized enterprises (SMEs) and non-bank credit providers (NBCPs), and the amount borrowed from the Bank in the third quarter of 2015.1 Two additional participants have joined the Scheme since the previous data publication , taking the number of groups participating in the FLS Extension to 36. Of these, 14 participants made total drawdowns of £2 .5bn during the third quarter of 2015. Participants also repaid £0 .3bn, taking total outstanding drawings to £63 .6bn. Net lending by FLS Extension participants to SMEs was £0 .7bn in the third quarter of 2015. This compares with quarterly net lending to SMEs in 2015 Q2 by FLS participants of £0.4bn, while the quarterly average for 2014 was −£0 .5bn (Chart 1) .2 Since the start of the year, net lending to SMEs and NBCPs has generated further borrowing allowances of £13.1bn overall, spread across 18 participants. Aggregate net lending to SMEs (i.e. including lending by banks and building societies not participating in the FLS) was also positive in 2015 Q3, and the annual growth rate in the stock of lending to SMEs became positive, continuing the gradually rising trend seen over the past few years (Chart 2) . Most survey evidence suggests that credit conditions for SMEs continued to improve in Q3 . For example, according to the Federation of Small Businesses’ Voice of Small Business Index, there was some improvement in credit affordability among small businesses. Respondents to the Bank’s Credit Conditions Survey also reported that both credit spreadsand fees and commissions to small companies had fallen in 2015 Q3, although they increased slightly for medium-sized firms. However, credit conditions for SMEs remain tighter than for large corporations as noted in the 2015 Q3 Credit Conditions Review. Improvements in credit conditions over the past few years in part reflect developments in bank funding spreads; despite a slight rise in some measures over the past few months, they remain significantly lower than atthe time of the launch of the FLS in 2012 (Chart 3) . 1 2 FLS Extension usage and lending [data are available at](data are available at www.bankofengland.co.uk/markets/Pages/FLS/extensiondata.aspx)[ ](data are available at www.bankofengland.co.uk/markets/Pages/FLS/extensiondata.aspx)[www.bankofengland.co.uk/markets/Pages/FLS/extensiondata.aspx](data are available at www.bankofengland.co.uk/markets/Pages/FLS/extensiondata.aspx). Note that some lenders that participated in the FLS Extension in 2014 opted not to participate in 2015. For the participants continuing into 2015, average quarterly net lending to SMEs in 2014 was £0 .0bn. All releases are available online [at www.bankofengland.co.uk/publications/Pages/news/default.aspx](at www.bankofengland.co.uk/publications/Pages/news/default.aspx) On 30 November, the Bank of England and HM Treasury announced a two-year extension to the FLS , to provide participants with additional flexibility to draw unused drawing allowances earned for positive net lending, with funding remaining available to support further improvements in credit conditions for SMEs.3 The extension will also ensure that the Scheme is gradually phased out, with borrowing allowances reducing over time, thereby minimising risks to the economic recovery from the withdrawal of funding support. ENDS Note to Editors 1. The FLS extension allows participants to make drawings between 1 February 2014 and up to the end of Janua

FAQs

What information does the 2015 Q3 FLS report provide?

It provides 2015 Q3 FLS usage and lending data, including net quarterly lending to UK SMEs and non-bank credit providers for each participating group, and the amount borrowed from the Bank.

How did the number of groups and drawdowns change in 2015 Q3?

Two additional participants joined since the prior publication, bringing FLS Extension groups to 36. In the third quarter of 2015, 14 participants made total drawdowns of £2.5bn and participants repaid £0.3bn.

How does the scheme extension affect borrowing allowances over time?

On 30 November, the Bank and HM Treasury announced a two-year extension. Borrowing allowances reduce from 1 August 2016 and the scheme phases out by end-January 2018, while funding remains available to support improvements in SME credit conditions.

Oct 29, 2026

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