logo
Plus   Neg
Share
Email

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 RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
In a move likely to further inflame global trade tensions, President Donald Trump has threatened to impose a 20 percent tariff on all cars imported to the U.S. from the European Union. Trump claimed he would impose the new tariffs unless the EU removes tariffs and trade barriers placed on the U.S. The Federal Reserve has determined that the largest U.S. banks are strongly capitalized and would be able to lend to banks as well as households during a severe global economic recession. This is the fourth straight year that all banks have met the Federal Reserve's standards. The first round of results of the supervisory stress tests were released by the central bank on Thursday. The "safety" driver behind the wheel of a self-driving Uber was streaming a television show on her smartphone up until about the time of a fatal crash in March, according to a report from the Tempe Police Department. Uber's self-driving Volvo SUV, which was traveling at under 44 miles per hour, had struck and killed a pedestrian in Arizona on March 18.
Follow RTT