Bank says FLS is not enough

PAUL Fisher, Executive Director for Markets at the Bank of England, said yesterday that the funding for lending scheme (FLS) cannot prompt an economic recovery on its own.

During his speech to an audience of business representatives, he said the Bank could provide a good environment for lending, but could not actually ensure that it occurred. “We’ve made the funds available to the banks to support lending, but it is up to banks to deliver”.

Despite disappointing figures for the first quarter, Fisher noted that the situation had improved in 27 of the banks that were covered by FLS.

Fisher also said that FLS was prompting lower interest rates, especially for mortgages, and was improving the general climate for credit in the UK.