The cut of interest rates and the launch of the Term Funding Scheme (TFS): media comment

 

Commenting on the decision to cut interest rates and the launch of the Term Funding Scheme (TFS), Louise Beaumont, Head of Public Affairs & Marketing at GLI Finance said:

“While the decision to introduce the Term Funding Scheme is a step forward in counteracting a further slowdown in bank lending to SMEs, there is unfortunately little precedent that it will make a difference. The Bank’s previous efforts, through the much maligned Funding for Lending Scheme, failed in its aims to incentivise banks and building societies to increase access to capital for SMEs with consistent reductions in net lending recorded.”

 

“In the new post-Brexit normal, it is critical that more is done to raise awareness of alternative finance as a viable option for SMEs who seek finance in the face of further reductions in bank lending. SMEs are the lifeblood of the economy that can drive the UK’s growth during a period of heightened economic uncertainty and we must strive to create a better environment in which lack of available credit is no longer an issue”

 

“Alternative finance as an asset class can also offer an attractive proposition to institutional investors seeking returns in a low interest rate environment that is here to stay.”