logo
Share SHARE
FONT-SIZE Plus   Neg

Reports: HSBC Unlikely To Take Part In UK Government's Lending Scheme

HSBC Holdings Plc (HBC,HSBA.L) is unlikely to partcipate in a lending scheme envisaged by the UK government to disburse loans to small firms at reduced rates, reports said.

The National Loan Guarantee Scheme is a major component of the credit-easing program that Chancellor of the Exchequer George Osborne announced last year. Its objective is to increase the flow of credit to small and medium businesses by lowering borrowing costs to banks and companies.

Banking giants Barclays Plc, Lloyds Banking Group and Royal Bank of Scotland, along with start-up Aldermore are expected to join the program when it is launched on Tuesday.

The participating banks will have access to cheap funding from the government and the lower costs are to be passed on to customers. However, many major banks already have access to cheap credit from financial markets and Barclays is said to have reservations about the scheme.

It is reported that the scheme will not enable HSBC to lend any cheaper than it is currently doing and the lender still gets a profit on these.

HSBA.L closed on Friday at 580.40 pence, up 5.60 pence or 0.97 percent, on a volume of 49.63 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
British lender Lloyds Banking Group Plc. Friday reported higher profit in its first half, benefited by increased net interest income and margin as well as lower impairment. Looking ahead, the company lifted its net interest margin forecast. Amgen reported an increase in second-quarter profit, driven by sales of arthritis drug Enbrel and osteoporosis treatments Xgeva and Prolia, and improved margins. Both earnings and sales topped Wall Street estimates. Electronic Arts Inc. (EA) on Thursday reported an increase in profit for the first quarter, reflecting continued strong digital revenues, with both earnings and revenues topping Wall Street estimates. However, shares of the company fell over 4 percent, after having detailed a weak outlook. Redwood...
comments powered by Disqus
RELATED NEWS
Trade HSBC now with 
Follow RTT