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
Delta Air Lines Inc. (DAL) pilots, represented by the Air Line Pilots Association International, are picketing on Friday at several airports across the country. The pilots said the picketing was to raise the sense of urgency in ongoing contract negotiations. The negotiations between the pilots... Charter Communications, and its recently acquired subsidiary Time Warner Cable, have been regularly overcharging its consumers to a tune of $7.2 million per year, according to a report from the U.S. Senate's Permanent Subcommittee on Investigations. According to the report, Time Warner Cable over-billed... Popular photo sharing network Instagram is adding a new translation button on its pages, so that the global crowd can read and enjoy the captions and comments given for the photographs uploaded. The new update will be available from next month onward.
comments powered by Disqus
Follow RTT