18 October 2001, 13:12  UK Sept private bank lending up 9.717 bln stg vs 11.553 bln rise in Aug - BBA

LONDON (AFX) - Total sterling lending by major British banks to the UK private sector rose by a seasonally-adjusted 9.717 bln stg in September, after allowing for mortgage securitisation, compared with a revised 11.553 bln stg rise the previous month, according to the British Bankers' Association. Mortgage lending rose an underlying 3.667 bln stg in September, compared with an underlying rise of 4.026 bln in August. Meanwhile, consumer credit rose 849 mln stg in September, compared with a 789 mln rise the previous month. Credit card borrowing rose by 172 mln stg, compared with 82 mln. September's rise was the largest for four months. Lending to the financial sector rose 3.064 mln stg, compared with a rise of 4.34 bln stg seen a month earlier, while lending to securities dealers was up 1.438 bln stg, compared with 4.4 bln stg gain in August. On the liabilities side of banks' balance sheets, individuals' deposits rose by 2.232 bln stg in September, against August's 2.609 bln stg rise. BBA's head of research and statistics, Peter Vipond said these were the first figures since the terrorist attacks on Sept 11, and noted that there has been "no direct evidence of any impact upon corporate demand for finance." However, he said increased lending to consumer-dependent sectors such as retailers, wholesalers, hotels and transport "may be symptomatic of reduced activity in the immediate weeks after." Mortgage lending remains buoyant, he said, though not as strong as recent months. Consumer credit remains on trend, in part due to a pick up in card borrowing, he said.

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