You can use the search function to find a range of UK Finance material, from consultation responses to thought leadership to blogs, or to find content on a range of topics from Capital Markets & Wholesale to Payments & Innovation.
Commenting on the announcement today by the Bank of England of measures to respond to the economic shock from Covid-19, Stephen Jones, CEO UK Finance, said:
The banking and finance industry recognises the concerns consumers and businesses may have about Covid-19 and all providers are ready and able to offer support to their customers who are impacted directly or indirectly. ?The new Term Funding Scheme with additional incentives for SMEs (TFS), and the release of the countercyclical buffer as it stands and reversal of the further increase that was in train, will help to ensure that funding from banks to businesses is not constrained and that excess reserves can be used to support lending to the real economy. ?Lowering the Bank rate remains a challenge for the banking sector and, as acknowledged by the Bank of England, when rates are low it is likely to be difficult for some firms to cut deposit rates which could limit their ability to reduce lending rates. The launch of the TFS will enable the industry to support cashflow needs with competitively priced finance for this vital part of the UK economy. ?A rate cut will affect consumers and businesses in different ways depending on the nature of the lending and savings products they hold. The majority of mortgage borrowers will not be impacted by today's rate cut, as they are on fixed-rate mortgages. For those mortgage borrowers on variable rates, lenders will be in contact to discuss any changes to their mortgage while many SMEs will automatically benefit where their borrowing is linked to Bank rate.
The banking and finance industry recognises the concerns consumers and businesses may have about Covid-19 and all providers are ready and able to offer support to their customers who are impacted directly or indirectly.
?The new Term Funding Scheme with additional incentives for SMEs (TFS), and the release of the countercyclical buffer as it stands and reversal of the further increase that was in train, will help to ensure that funding from banks to businesses is not constrained and that excess reserves can be used to support lending to the real economy.
?Lowering the Bank rate remains a challenge for the banking sector and, as acknowledged by the Bank of England, when rates are low it is likely to be difficult for some firms to cut deposit rates which could limit their ability to reduce lending rates. The launch of the TFS will enable the industry to support cashflow needs with competitively priced finance for this vital part of the UK economy.
?A rate cut will affect consumers and businesses in different ways depending on the nature of the lending and savings products they hold. The majority of mortgage borrowers will not be impacted by today's rate cut, as they are on fixed-rate mortgages. For those mortgage borrowers on variable rates, lenders will be in contact to discuss any changes to their mortgage while many SMEs will automatically benefit where their borrowing is linked to Bank rate.
<p>UK Finance is the collective voice for the banking and finance industry. Representing more than 250 firms across the industry, we act to enhance competitiveness, support customers and facilitate innovation. </p> <ul><li> Banks and other finance providers recognise that the cashflow of small and medium sized businesses may be disrupted by coronavirus (Covid-19) impacts and are committed to supporting viable businesses in continuing to trade while they implement their contingency plans.</li> <li> Businesses should contact their bank or finance provider early on if they think they might need additional finance, or changes in their current facilities. There?s plenty of support available and it can be quicker and easier than might expected with many finance providers having established pre-approved limits for customers in anticipation of their needs. The earlier providers engage with providers the better. There are also many alternative sources of finance available ? helpful guidance is available through <a href="http://www.betterbusinessfinance.co.uk">www.betterbusinessfinance.co.uk…; <li> Banks and other finance providers have capacity to meet an increase in demand for finance from SMEs and are keen to support applications from viable businesses. Some finance providers have set aside specific funds for SMEs, industry sectors and regions in order to provide confidence but have also confirmed that funding will not be limited to these amounts.</li> <li> Finance providers have been proactively identifying and contacting clients with links to China, specific sectors most likely to be affected and offering support to mothers with pre-approved limits, working with them to understand their requirements and how they might be supported.</li> </ul>
01.05.24
25.01.24
24.01.24
By downloading this document, you understand and agree that any sharing, distribution or republishing of the content, without prior written authorisation from the author or content managers at UK Finance, shall be constituted as a breach of the UK Finance website terms of use.
