It has been revealed that five of the UK's major lenders are participating in the Treasury and the Bank of England's (BoE) Funding for Lending Scheme (FLS), which has buoyed investor confidence in the sector.
Designed to stimulate the economy by making cheaper loans available to first-time buyers and small businesses, FLS gives banks and building societies that sign up to the initiative access to better-than-market-rate funds.
The BoE, which manages the scheme, said 13 banks and building societies have signed up so far, representing 73 per cent of the market and £1.2 trillion worth of lending.
But although five of the biggest lenders are involved, only six of the UK's 47 building societies are participating so far, however the Building Societies Association believes this number will increase.
At 15:25 BST on the London Stock Exchange, participating banks Lloyds and Barclays saw their share prices rise by 0.7 per cent to 40.39p and 1.4 per cent to 223.40p respectively.
Find the latest spread betting strategies for the FTSE 100 at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.