Member Article

Funding for Lending: the story so far

The Government’s Funding for Lending scheme was launched back in July as a vehicle to spur bank lending to businesses and households.

It followed the failed Project Merlin programme, and George Osborne’s national loan guarantee scheme.

There has been speculation as to whether the scheme has delivered for businesses yet, as lenders gradually get on board.

The Bank of England’s most recent summary of business conditions suggested it had a more immediate impact on the availability of residential mortgage lending than on business lending.

So far 16 banks and building societies have signed up to the scheme, accounting for over 70% of the stock lending to UK households and corporates.

Earlier this year, chief executive of markets at the Bank of England, Paul Fisher, said that it would take time for the banks to draw from the scheme, in some cases stretching to the end of 2013.

In this video, RBS chairman of small business banking at the Royal Bank of Scotland, Peter Ibbetson explains more about the Bank’s involvement in the scheme.

Video content by Independent Media News

This was posted in Bdaily's Members' News section by Tom Keighley .