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CBI comments on Funding for Lending scheme
The CBI recently commented on the Funding for Lending scheme announced by the Bank of England and the Government, through which banks will be able to access more and cheaper funding over the next 18 months to pass on to businesses and households.
John Cridland, CBI Director-General, said:
“This new scheme should provide a real incentive for banks and building societies to increase their lending to businesses and individuals, if possible at lower rates of interest.
“It is a positive step towards stabilising funding for lending, particularly given the current market turmoil driven by the Eurozone crisis.
“I hope this may enable mortgages to be available at a lower rate of interest.”
On lending to businesses, he added:
“Smaller businesses I talk to are concerned with cost of borrowing as well as with its availability. Funding for Lending will help the transition to a ‘new normal’, where structural changes in banking, driven by capital and liquidity reforms, are impacting on business finance.”