To ask Her Majesty's Government whether they have any evidence of a movement of bank lending flows towards normal corporate and personal borrowers, rather than into passive assets, following the recent second tranche of support. [HL1226]

On 19 January, the Government announced measures designed to reinforce the stability of the financial system, to increase confidence and capacity to lend, and in turn to support the recovery of the economy. These build on measures announced on 8 October last year.

The Government intend to negotiate lending agreements with the banks participating in certain facilities. These will have specific and quantified lending commitments, and will be binding and externally audited.

These measures have helped to stabilise the credit market. This is an essential condition for banks to develop greater confidence to lend to creditworthy businesses, homeowners and consumers.