Lloyds First to Draw from UK’s Funding for Lending Scheme
Lloyds has become the first UK bank to take advantage of the government’s Funding for Lending (FLS) scheme, which is designed to direct funnel money to struggling businesses. The bank announced on 19 September that it has drawn £1bn ($1.6 billion) from the initiative, as it seeks to increase the amount it is able to loan to businesses.
Chief executive officer (CEO), Antonio Horta-Osario, indicated that Lloyds will use the FLS on a regular basis. “This initial £1bn is just the start,” he said. “We are committed to helping Britain prosper by encouraging investment and supporting businesses and households.”
Under the terms of the FLS, the Bank of England (BoE) and the Treasury have joined forces to provide funding worth around £80bn to financiers at low interest rates over four years on the premise they pass these savings on to companies and households.
The UK’s ruling Conservative-Liberal Democrat coalition hopes that the programme will stimulate business activity and, in turn, boost economic activity.