Banks to cut lending to commercial real estate firms

Banks are expecting to significantly cut their lending to commercial real estate in the months running up to Christmas, a new survey shows. A Bank of England credit conditions survey showed banks are predicting a 22 percentage point drop in lending to commercial real estate companies. The balance of banks planning to increase lending over the next three months dropped from -1.6% in Q3 to an expected -23.9% in Q4. Across the general corporate sector, the survey showed banks are also expecting a drop in lending. The balance of banks expecting to increase lending over the next three months fell