A new government initiative to push banks into lending more money to businesses and consumers has started.
Under the ‘Funding for Lending’ scheme (FLS) the Bank of England will make it easier for banks to borrow money at below market rates, with the intention that this will in turn, be lent on to businesses and individuals. The banks who receive the funds will be monitored to ensure that their lending increases.
Lending to businesses
The Bank says that the FLS is "designed to incentivise banks and building societies to boost their lending to UK households and non-financial companies"....