During these difficult economic times and #Brexit looming, the Government has introduced schemes to help stimulate growth and improve lending and with the promise of 9 regional trade departments throughout the UK. One such initiative was Project Merlin, where the major high street banks were given quarterly lending targets to meet however, this has now ceased.
The National Loan Guarantee Scheme was launched and again, this was aimed at improving lending to small and medium enterprises (SMEs)
On the 1st August, the Government announced the introduction of the Funding for Lending Scheme (FLS) which will not only increase the amount of capital available to SMEs, it will also provide funding to the mortgage market for first-time-buyers, as well as second time homeowners.
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.
The Bank of England has released data showing the banks involved in the Funding for Lending scheme.
The banks involved can be seen below, and collectively account for 73% of lending to both UK households and corporate’s.
- Aldermore Bank Plc
- Barclays Bank Plc
- Hinckley & Rugby Building Society
- Ipswich Building Society
- Kleinwort Benson
- Leeds Building Society
- Lloyds Banking Group
- Monmouthshire Building Society
- Nationwide Building Society
- Principality Building Society
- RBS Group
- Virgin Money
It uses deposits from retail customers to lend – although it said it had not ruled out signing up in the future.
The Bank of England will release a league table of bank net lending each quarter to show how the banks have been performing since the launch of the scheme.
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