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Scottish Banks

Volume 884: debated on Thursday 23 January 1975

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asked the Chancellor of the Exchequer if he will ease the restrictions imposed on Scottish clearing banks, whereby they have to place non-interest bearing supplementary deposits with the Bank of England if their interest-bearing eligible liabilities grow faster than 1½ per cent. per month; and if he will raise this ceiling from 1½ per cent. to 2½ per cent. as far as Scottish banks' lending to Scottish manufacturing, agriculture, construction, and transport and communications industries is concerned.

As far as I am aware the restrictions on the growth of bank deposits are not affecting the overall availability of bank finance for Scottish industry and agriculture.