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
Rapper turned businessman Jay Z is to announce his own music streaming service to rival Spotify tonight revamping his technology company
Stephen Fry has quit Instagram, telling fans he has been "hounded off" the social media site.
The Office star Martin Freeman has given his backing to Labour in the party's first party election broadcast in England.