British banks took on some £4.4 billion ($7 billion) from the Bank of England's (BoE) Funding for Lending Scheme (FLS) in the third quarter of the year.
New figures released by the central institution yesterday (4 December) revealed that the new initiative proved highly popular during the three months between July and September.
Under the terms of the FLS, financiers are able to borrow money from the BoE at favourable interest rates on the premise that they then pass these savings on to consumers and businesses.
The institution believed this programme would help support the UK's overall economic recovery and these statistics have shown that net lending from FLS participants was around £500 million in quarter three.
Paul Fisher, executive director for markets at the BoE, said he remains confident that the initiative will raise the supply of credit across the country, but admitted it is still "too early" to use this data as a "reliable indication" of its effect on lending volumes.
By Gary Cooper