Banks sign up to Funding for Lending scheme
So far most of the UK’s major banks have signed up with the Bank of England, which runs the scheme, confirming today tagt 13 banks and building societies had signed up.
Between them they represent 73% of the market and £1.2 trillion worth of lending.
The institutions can borrow up to 5% of their loan books immediately, and more if they meet certain conditions over the next year.
Based on that, about £60bn of Bank of England funding has been provided so far.
The banks and building societies that have signed up are: Aldermore, Barclays, Hinckley & Rugby, Ipswich, Kleinwort Benson, Leeds, Lloyds Banking Group, Monmouthshire, Nationwide, Principality, RBS Group, Santander and Virgin Money.
Paul Fisher, the Bank of England’s executive director for markets, said in a speech this morning: “I am confident that the FLS will help the supply of credit.
“Before its introduction, it was more likely than not that the stock of credit would contract further over the next 18 months.”