More of the UK’s lenders have flocked to tap cheap cash from the Bank of England’s Funding for Lending scheme, Threadneedle Street said today.
The additional 17 lenders — the majority of whom are building societies — take the total number of institutions taking part in the scheme to 30, bolstering hopes of a significant credit boost to the struggling UK economic recovery.
The Co-operative, Clydesdale, and Tesco were among the new lenders to sign up.
Under the Funding-to-Lending Scheme, banks can get access to funds at rock-bottom prices as long as they grow their net lending into the economy.
All of the UK’s Big Six have signed up except HSBC. The Treasury hopes the scheme could see as much as £80 billion in extra credit to businesses and households.
Despite a slow start since the scheme began in August, evidence that it is beginning to thaw the credit freeze is beginning to emerge.
Lending figures this week showed the strongest growth in consumer borrowing for more than four years. Approvals for home loans also topped the 50,000 mark in September.
