Bank of England says UK bank lending stronger in third quarter

LONDON, Dec 2 (Reuters) - The Bank of England said netlending by banks and building societies taking part in itsFunding for Lending Scheme was 5.8 billion pounds ($9.5 billion)in the third quarter, more than three times the level of theprevious quarter.

Banks have drawn down 23.1 billion pounds of cheap fundsfrom the FLS since it was introduced last year, and net lendinghas increased by 3.6 billion pounds since June 2012.

The data showed the biggest net lenders in the quarter wereLloyds Banking Group and Nationwide, who increasedlending by 3.1 billion pounds and 2.7 billion respectively. Netlending fell at Santander UK, Barclays and theCo-operative Bank.