All you need to know
BOE Data on Net Lending to Companies
Net Lending (or the net flow of credit) tracks the net expansion or contraction of bank credit provided to the real UK economy 1, 6.
Referenced internet pages dealing with BOE (Bank of England)on-line information:
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Formula & Calculation
Net Lending = Gross Lending − Repayments ± ΔOverdraftsInstead of simply showing outstanding balances, net lending isolates the actual monthly flow of new capital 7. -
Headline Credit Measures
- M4Lex: The BoE’s headline measure for the private sector, which represents M4 lending excluding lending to intermediate other financial corporations (IOFCs) 1, 6.
- Households: Subdivided into net mortgage lending (lending secured on dwellings) and consumer credit (comprising credit cards, personal loans, and dealership finance) 1, 2.
- Businesses: Measures net lending to Private Non-Financial Corporations (PNFCs) and Small & Medium-Sized Enterprises (SMEs) 2.
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Data Adjustments
The BoE publishes both seasonally adjusted (SA) and non-seasonally adjusted (NSA) net lending flows 3, 6. To ensure that “net lending” reflects genuine new credit creation, the BoE adjusts the flows for bad-debt write-offs, loan securitizations, and portfolio transfers 4, 5 .
Referenced internet pages dealing with BOE (Bank of England)on-line information:
- 1 – BOE – Money and Credit – Nov 2025 (from : www.bankofengland.co.uk)
- 2 – BOE – Money and Credit – July 2025 (from : www.bankofengland.co.uk)
- 3 – BOE – Bankstats Tables (from : www.bankofengland.co.uk)
- 4 – BOE – Statistics (from : www.bankofengland.co.uk)
- 5 – BOE – Statistics FAQs (from : www.bankofengland.co.uk)
- 6 – BOE – Statistical Release: Money and Credit Nov 2016 (from : www.bankofengland.co.uk)
- 7 – BOE – Statistical Release : Money and Credit Feb 2018 (from : www.bankofengland.co.uk)