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
A California man has filed a lawsuit against McDonald's alleging that the fast food giant is defrauding customers by cramming its mozzarella sticks with filler instead of real cheese. Chris Howe is seeking at least $5 million in damages on behalf of consumers in 42 states and the District of Columbia. The... Jeep, the 4x4 vehicles, which has developed a strong bond with its masters, is aggressively on an expansion mode in its 75th anniversary year. Its fans have always been in love with the famous tag "Go Anywhere, Do Anything." Meat products maker Tyson Foods Inc. (TSN) reported a profit for the first-quarter that increased 49% from last year. It raised its profit outlook for fiscal year 2016 ,but it cut its annual sales guidance.
comments powered by Disqus
RELATED NEWS
Trade HSBC now with 
Follow RTT