Revealed on Friday, the data by Bank of England has shown that as much as £3bn fall has occurred in the loans and overdrafts lent to the British companies.

The data has raised concerns over the Bank's Funding for Lending Scheme (FLS). Also, it emerged that the British companies were struggling since December last year in wake of the fall in lending and hike in the borrowing costs.

All the Banks have been issued a warning that they are only left with a month's time to accept the plans made by the Bank of England to maintain the capital black holes.

It comes in the middle of rising frustration among regulators about what is being illustrated as "foot dragging" by the banking industry.

The weakening of the pound against the dollar and the Euro was followed by a report issued by the government that suggested that the economists predict U. K. consumer-price inflation could ease in the month of April.