Five British Banks Sign the Funding for Lending Program

Five of the UK’s six biggest lenders have signed up to the Funding for Lending scheme, designed to stimulate the economy by making cheaper loans available to firms and individuals.

HSBC is the only one of the top six not taking part, as it says it does not need additional funding.

The Bank of England, which runs the scheme, said 13 banks and building societies had signed up so far.

They represent 73% of the market and £1.2 trillion worth of lending.

The institutions can borrow the equivalent of up to 5% of their loan books immediately, and more if they meet certain conditions over the next year.

Based on their current lending levels, the 13 institutions could initially draw on up to £60bn of Bank of England funding.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza
Alfonso Esparza

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