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Corporate lending expected to contract, Bank of England survey shows

British banks expect that lending to the corporate sector will narrow in the three months to the end of November, the Bank of England's quarterly credit conditions survey showed.

Lenders reported a drop in demand for corporate lending from small businesses in the three months to the end of August, although they expected demand to remain unchanged in the ensuing three months.

The report also showed that demand for both credit card and other unsecured lending is expected to decrease slightly in the three months to November-end.

The availability of secured credit to households decreased in the third quarter, the banks said, and is expected to decrease further over the three months to the end of November.