A recent survey by Bank of England showed that the credit availability had improved for larger companies in the first quarter of the year. The survey showed that the banks are pushing up the cost of credit for small businesses instead of helping these small companies. On the other hand, the banks had lowered the spreads and fees for lending to large companies.

According to the report, banks said that the demand for credit from small business firms grew more than expected in the last quarter. However, banks are expecting to extend more loans to small companies in the next three months. The banks said that they anticipate the increasing demand as the companies are looking to refinance their existing loans and funds in the coming three months.

The survey also showed that the supply of secured credit to households was reported almost unchanged in the first quarter of the year. Banks said that there were many factors responsible for that including the heavy snow in January and the end of the stamp duty holiday.

Whereas, the market analysts said that the lowered demand from households was also affected by some other factors including the weaker outlook for their post tax incomes in the context of an uncertain labor market.