The banks are supposed to get lending again, and simultaneously rebuild their cash reserves. But Bank of England statistics show that reserves are actually falling, instead.
Figures for last month show that year-on-year, notes and coins in circulation increased by nearly 4%, but reserves held in bank accounts dropped by over 11%.
I reproduce the BoE’s table below (interesting that they present it in a bashful pale grey on white – the visual equivalent of the civil servant’s polite, embarrassed cough?) – click to enlarge.