The Funding for Lending Scheme

15 Pages Posted: 4 Jan 2013

See all articles by Rohan Churm

Rohan Churm

Bank of England - Monetary Analysis

Amar Radia

Bank of England

Jeremy Leake

Bank of England

Sylaja Srinivasan

Bank of England - Monetary Analysis

Richard Whisker

Bank of England

Date Written: December 18, 2012

Abstract

The Bank of England and HM Treasury launched the Funding for Lending Scheme (FLS) in order to encourage lending to households and companies. The FLS offers funding to banks and building societies for an extended period. And it encourages them to supply more credit by making more and cheaper funding available if they lend more. Easier access to bank credit should boost consumption and investment by households and businesses. In turn, increased economic activity should raise incomes. Early signs have been encouraging, as funding costs for UK banks have fallen sharply. But it will be some time before the impact of the FLS on lending is clear. The Bank is monitoring a range of indicators in order to assess the direct and indirect impacts of the Scheme.

Suggested Citation

Churm, Rohan and Radia, Amar and Leake, Jeremy and Srinivasan, Sylaja and Whisker, Richard, The Funding for Lending Scheme (December 18, 2012). Bank of England Quarterly Bulletin 2012 Q4. Available at SSRN: https://ssrn.com/abstract=2195944

Rohan Churm (Contact Author)

Bank of England - Monetary Analysis ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

Amar Radia

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Jeremy Leake

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Sylaja Srinivasan

Bank of England - Monetary Analysis ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

Richard Whisker

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

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