While launching a new £80bn Funding for Lending scheme this week, the chancellor announced that it would replace a £20bn credit easing scheme launched in March.
The Funding for Lending scheme announced on Wednesday (1 August) will provide up to £80bn in extra finance for banks and building societies at favourable rates to support new loans to small businesses and mortgages for home-buyers.
During the scheme’s 18-month “drawdown period” until the end of January 2014, the Bank of England will offer to lend banks four-year UK Treasury Bills. The banks will be able to swap the loans back when they mature to minimise their risks, and the price paid will be based on the bank’s net lending between 30 June 2012 and t...
About John Stokdyk
John Stokdyk is the global editor of AccountingWEB UK and AccountingWEB.com.