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Mr. Alex Carlile
To ask the Chancellor of the Exchequer if he will consult the Governor of the Bank of England with a view to making changes in the standard inclusion in banking contracts of repayment on demand; and if he will make a statement. [9881]
Mrs. Angela Knight
[holding answer 18 January 1996]: No. The precise form that a particular loan takes is a commercial matter to be agreed between a borrower and his bank. Since 1992 there has been a shift in small business lending away from overdrafts, which are repayable on demand, and towards a greater proportion of fixed-term loans.