Northern Rock’s new borrowing from the Bank of England appeared to slow last week. Financial Times, The Times, Daily Telegraph.
The Bank published figures showing its balance sheet expanded by £500m in the week to November 7.
The balance sheet has provided a reasonably accurate guide to Northern Rock’s level of borrowing until the end of October when a gap emerged between the level of assets on the Bank’s balance sheet and its lending to the Newcastle borrower.
Other assets on the Bank’s balance sheet have increased by £23.3bn since September 12, but Northern Rock’s share of that sum is understood to be closer to £20bn.
One reason why the figures may have slowed now is that Northern Rock has reined in mortgage lending since August, meaning its funding requirements for writing new home loans will have reduced.