Weak demand holding back lending, banks say

Gross mortgage lending stagnated in July, the British Banking Association (BBA) said yesterday. The BBA reported £7.6bn in lending, the same level as in June – and slightly below the six-month average of £7.8bn. Net loan and overdraft lending also remained sluggish, coming in at minus £200m; net lending to non-financial companies was flat. “Demand for borrowing from both households and companies continues to be weak reflecting the slow growth in the economy,” the BBA said.