The Confederation of British Industry (CBI) commented on an announcement by the Treasury that the Funding for Lending Scheme is now up and running.
The £80 billion scheme will make money available to banks on the condition they provide cheaper loans and mortgages to first time buyers and small businesses. CBI's director-general John Cridland said the initiative is "broader" than the previous loan scheme:
This scheme should support banks to make finance more affordable to businesses and consumers, while also encouraging banks to lend more.
The Funding for Lending Scheme is likely to naturally replace the National Loan Guarantee Scheme overtime because it is a bigger scheme that is open to a broader range of firms.
More top news
A man has had his foot amputated after falling into an escalator in Shanghai - just a week after a woman died in a similar incident.
Industry groups and political rivals warn the planned regulation will raise energy prices and threaten jobs.
The actress said she was 'devastated' to hear the tragic news of her idol's death and described her as a 'remarkable woman'.