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.