Funding for Lending Scheme extended
The Bank of England and the Treasury have announced that the Funding for Lending Scheme (FLS) has been extended by two years. Banks taking part in the FLS lent a net £1.1bn to SMEs in the first six months of 2015, in contrast to a net reduction in lending of almost £2bn last year. The biggest net lenders to SMEs during the period were Lloyds Banking Group and Aldermore, BoE data showed. The Bank is also tweaking the FLS to encourage more challenger banks to tap the scheme for funds. Existing members will only earn more allowances for FLS funds on loans made up to the end of this year. New members authorised after April 2013 will in contrast earn allowances on loans made over the next two years, allowing them a bigger FLS pot to draw on.
Source: The Independent (01/12/2015)