The Funding for Lending Scheme
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.
Volume (Year): 52 (2012)
Issue (Month): 4 ()
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- Button, Richard & Pezzini, Silvia & Rossiter, Neil, 2010. "Understanding the price of new lending to households," Bank of England Quarterly Bulletin, Bank of England, vol. 50(3), pages 172-182.
- Butt, Nicholas & Domit, Silvia & McLeay, Michael & Thomas, Ryland & Kirkham, Lewis, 2012. "What can the money data tell us about the impact of QE?," Bank of England Quarterly Bulletin, Bank of England, vol. 52(4), pages 321-331.
- Joyce, Michael & Tong, Matthew & Woods, Robert, 2011. "The United Kingdom’s quantitative easing policy: design, operation and impact," Bank of England Quarterly Bulletin, Bank of England, vol. 51(3), pages 200-212.
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