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Cheaper funding is round the corner

Lenders will be able to access cheaper funding through the government’s Credit Guarantee Scheme within a matter of days.

Institutions will benefit from lower costs to access the scheme pending approval from the European Commission, which is hoped will be secured over the next couple of days.

Higher rate charges that are incurred during this time will be backdated to the lower cost once the Treasury has backing from the EC.

The government announced the proposals yesterday to bring down the costs for lenders to use the scheme, which provides a government guarantee for a fee.

The way the fees are determined is being changed so that lenders using the scheme will be charged a lower fee for use of the government guarantee. The Treasury maintains this will still be priced at a commercial rate.

The aim is to reduce the cost of funding under the scheme, first announced in October, and bring it more in line with the cost of funding in other countries.

The government plans to ensure the lower cost of funding is passed on to homes and businesses through its proposed supervisory lending panel.

The scheme has been lengthened from three years to five years ending in April 2014. It currently provides guarantees for borrowing in sterling, euros, and US dollars but the plan is widen this out in future to a range of currencies.


Concern about bank clampdown

Andrew Sentance, a member of the Monetary Policy Committee, has warned that heavy-handed bank regulation could lead to negative consequences.

Big names are down-to-earth about property

Many people have said to me that being a surveyor must be a lonely existence and they are right, but the chance of a sparkling social life is not what attracted me to the job in the first place.

MPC backs MBS guarantees

The Monetary Policy Committee has advocated the Treasury’s move to guarantee loans saying that base rate is not the way to bolster the credit markets.

Morgan Stanley hit by $2.2bn loss

Morgan Stanley has posted a $2.2bn (£1.38m) loss for Q4 amidst what the US investment bank has dubbed challenging and unprecedented market turmoil.

Jelf flexible benefits

In Focus: How to choose a flexible benefits provider — seven top tips

Jelf Employee Benefits looks at some of the key considerations employers should think about when reviewing and choosing a flexible benefits provider. Choosing the right benefits for your employees is one thing but delivering a successful employee benefits strategy is about understanding the complete picture and delivering it in a personalised way so that it resonates with each and every individual in your business. 


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