{"id":"567a01295c408b464b5f72e21040e521ba4e61c2ec373aa3e42670f04aef9ebe","title":"Bank of England reports lenders’ funding, capital and lending costs","argument":"The Bank of England published this survey on 08 October 2026. It reports lenders’ accounts of changes over the previous three months and expectations for the next three, rather than the Bank’s own view of developments. The Bank says changes in lenders’ funding can affect their willingness or ability to lend and the price of lending, making the survey a window on potential pressures on credit conditions.\n\nLenders reported that total funding volumes increased, while the cost of funding rose for retail deposits and fell for ‘other’ funding. They also reported that total capital levels decreased, and that the internal price charged to business units for funds for new loans was unchanged. For the next quarter, lenders expected total funding to increase, but expected the internal price for new-loan funding to rise. 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The survey was conducted between 17 August and 4 September 2026; the source says impacts from more recent developments are not captured.","speaker":{"name":"Bank of England","roleAtSource":"Publisher"},"source":{"title":"Bank Liabilities Survey - 2026 Q3","publisher":"Bank of England","format":"Article","url":"https://www.bankofengland.co.uk/bank-liabilities-survey/2026/2026-q3","publishedAt":"2026-10-08T08:30:00.000Z","dateBasis":"Date supplied by the publisher’s feed."},"evidence":[{"text":"The Bank of England published the survey on 08 October 2026.","excerpt":"Published on\n08 October 2026","url":"https://www.bankofengland.co.uk/bank-liabilities-survey/2026/2026-q3","relationship":"Source-stated"},{"text":"The Bank says changes in the price, quantity and composition of lenders’ funding may affect their willingness or ability to lend, and the price of lending.","excerpt":"Changes in the price, quantity and composition of lenders’ funding may affect their willingness or ability to lend, and the price of lending.","url":"https://www.bankofengland.co.uk/bank-liabilities-survey/2026/2026-q3","relationship":"Source-stated"},{"text":"Lenders reported that total funding volumes increased in the three months to end-August 2026.","excerpt":"Lenders reported that total funding volumes increased in the three months to end-August 2026 (Q3)","url":"https://www.bankofengland.co.uk/bank-liabilities-survey/2026/2026-q3","relationship":"Source-stated"},{"text":"Lenders reported that total capital levels decreased in Q3.","excerpt":"Lenders reported that total capital levels decreased in Q3","url":"https://www.bankofengland.co.uk/bank-liabilities-survey/2026/2026-q3","relationship":"Source-stated"},{"text":"Lenders reported that the transfer price was unchanged in Q3 and expected it to increase in Q4.","excerpt":"Lenders reported that the internal price charged to business units to fund the flow of new loans – sometimes referred to as the ‘transfer price’ – was unchanged in Q3, and was expected to increase in Q4","url":"https://www.bankofengland.co.uk/bank-liabilities-survey/2026/2026-q3","relationship":"Source-stated"},{"text":"The results are based on lenders’ responses and do not necessarily reflect the Bank’s views.","excerpt":"The results are based on lenders’ own responses to the survey, and are reported as net percentage balances. 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For the next quarter, lenders expected total funding to increase, but expected the internal price for new-loan funding to rise. These are expectations, not realised outcomes.\n\nThe results are weighted summaries of lenders’ responses, expressed as net percentage balances; the Bank says they do not necessarily reflect its views. The survey was conducted between 17 August and 4 September 2026, so it does not capture more recent developments. It offers evidence about what responding lenders reported and expected, but does not establish how lending or credit conditions subsequently changed.","topicIds":["investment-booms-and-busts"],"domain":"other","claimType":"attributed reading","limits":"Text as retrieved on October 23, 2026; originally published October 8, 2026. The survey reports lenders’ own responses as net percentage balances; its expectations are not realised outcomes, and the Bank says the results do not necessarily reflect its views. The survey was conducted between 17 August and 4 September 2026; the source says impacts from more recent developments are not captured.","speaker":{"name":"Bank of England","roleAtSource":"Publisher"},"source":{"title":"Bank Liabilities Survey - 2026 Q3","publisher":"Bank of England","format":"Article","url":"https://www.bankofengland.co.uk/bank-liabilities-survey/2026/2026-q3","publishedAt":"2026-10-08T08:30:00.000Z","dateBasis":"Date supplied by the publisher’s feed."},"evidence":[{"text":"The Bank of England published the survey on 08 October 2026.","excerpt":"Published on\n08 October 2026","url":"https://www.bankofengland.co.uk/bank-liabilities-survey/2026/2026-q3","relationship":"Source-stated"},{"text":"The Bank says changes in the price, quantity and composition of lenders’ funding may affect their willingness or ability to lend, and the price of lending.","excerpt":"Changes in the price, quantity and composition of lenders’ funding may affect their willingness or ability to lend, and the price of lending.","url":"https://www.bankofengland.co.uk/bank-liabilities-survey/2026/2026-q3","relationship":"Source-stated"},{"text":"Lenders reported that total funding volumes increased in the three months to end-August 2026.","excerpt":"Lenders reported that total funding volumes increased in the three months to end-August 2026 (Q3)","url":"https://www.bankofengland.co.uk/bank-liabilities-survey/2026/2026-q3","relationship":"Source-stated"},{"text":"Lenders reported that total capital levels decreased in Q3.","excerpt":"Lenders reported that total capital levels decreased in Q3","url":"https://www.bankofengland.co.uk/bank-liabilities-survey/2026/2026-q3","relationship":"Source-stated"},{"text":"Lenders reported that the transfer price was unchanged in Q3 and expected it to increase in Q4.","excerpt":"Lenders reported that the internal price charged to business units to fund the flow of new loans – sometimes referred to as the ‘transfer price’ – was unchanged in Q3, and was expected to increase in Q4","url":"https://www.bankofengland.co.uk/bank-liabilities-survey/2026/2026-q3","relationship":"Source-stated"},{"text":"The results are based on lenders’ responses and do not necessarily reflect the Bank’s views.","excerpt":"The results are based on lenders’ own responses to the survey, and are reported as net percentage balances. Changes in balances are described","url":"https://www.bankofengland.co.uk/bank-liabilities-survey/2026/2026-q3","relationship":"Source-stated"},{"text":"The survey results do not capture developments after the survey period.","excerpt":"The survey was conducted between 17 August and 4 September 2026. Any impact from more recent developments will therefore not be captured.","url":"https://www.bankofengland.co.uk/bank-liabilities-survey/2026/2026-q3","relationship":"Source-stated"}],"sourceMedia":{"status":"unchecked","sourceUrl":"https://www.bankofengland.co.uk/bank-liabilities-survey/2026/2026-q3","checkedAt":null,"items":[]},"assumptions":[],"openQuestion":{"attribution":"Open question","text":"Will the lenders’ expected increase in the internal price of funding new loans be reflected in the price or availability of lending?"},"whatWouldChangeView":{"attribution":"Change condition not recorded","text":""},"editorialComparisons":[],"live":{"title":"Bank of England reports lenders’ funding, capital and lending costs","summary":"The Bank of England published this survey on 08 October 2026. It reports lenders’ accounts of changes over the previous three months and expectations for the next three, rather than the Bank’s own view of developments. The Bank says changes in lenders’ funding can affect their willingness or ability to lend and the price of lending, making the survey a window on potential pressures on credit conditions.\n\nLenders reported that total funding volumes increased, while the cost of funding rose for retail deposits and fell for ‘other’ funding. They also reported that total capital levels decreased, and that the internal price charged to business units for funds for new loans was unchanged. For the next quarter, lenders expected total funding to increase, but expected the internal price for new-loan funding to rise. These are expectations, not realised outcomes.\n\nThe results are weighted summaries of lenders’ responses, expressed as net percentage balances; the Bank says they do not necessarily reflect its views. The survey was conducted between 17 August and 4 September 2026, so it does not capture more recent developments. 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This matches the source, which also says the results do not necessarily reflect the Bank's views. The page is a single report, not a listing; the related-surveys sidebar does not change that.","excerpt":"The results do not necessarily reflect our views on developments in bank liabilities."},{"dimension":"summary","status":"pass","explanation":"The summary accurately conveys the Q3 findings: funding volumes up, retail deposit costs up and 'other' costs down, capital down, and the transfer price unchanged with an expected rise. It also carries the methodological caveats. Central terms are explained in plain language, such as the internal price for new-loan funding and net balances as weighted summaries. The question follows from the reported expectation and does not lead the reader.","excerpt":"Lenders reported that total capital levels decreased in Q3, and were expected to increase in Q4 (Chart 5)."},{"dimension":"date","status":"pass","explanation":"The reading states 08 October 2026, which matches the source's 'Published on 08 October 2026' and the UTC day of originalPublished. Q4 changes are framed as expectations, not outcomes. The reading uses no hindsight and does not rely on the sidebar. The evidence is a publisher page, so no archive disclosure is needed.","excerpt":"Published on\n08 October 2026"},{"dimension":"support","status":"pass","explanation":"All claims are stated in the source. One minor citation flaw: the excerpt for the 'do not necessarily reflect the Bank's views' claim is cut off before that wording, though the source states it elsewhere. The smallest repair is to cite that sentence instead. The 'window on potential pressures' framing rests on the Bank's stated rationale and is hedged as potential. The reading also says it does not establish later lending outcomes.","excerpt":"Changes in the price, quantity and composition of lenders’ funding may affect their willingness or ability to lend, and the price of lending."},{"dimension":"media","status":"pass","explanation":"No media is selected and no verified media candidates were supplied, so there is nothing to check for identity or relevance.","excerpt":null}],"createdAt":"2026-11-05T03:33:25.542Z","model":"anthropic/claude-opus-5.5"}],"correctionUrl":"https://escapemeridian.com/corrections/"}