-BOE Fisher Downplays HSBC Rejection of the FLS
LONDON (MNI) – The Bank of England and Treasury’s joint Funding for
Lending Scheme, unveiled Friday, is a complement and not a substitute
for quantitative easing, BOE Executive Director Markets Paul Fisher
says.
In a Bloomberg TV interview Fisher downplayed news HSBC, the UK’s
largest banking group, has refused to take part in the scheme, saying
they were atypical and the FLS would support lending.
Analysts are skeptical about the likely impact of the FLS, a view
reinforced by the news about HSBC turning it down.
“HSBC are a special case … They are awash with retail deposits
and other things they don’t know what to do with,” Fisher said.
He believes that QE and the FLS are doing different jobs, with the
latter unblocking the banking channel while the former can bypass the
banks.
“QE was really designed to go round the banks … But by now, the
banks should have fixed themselves,” he said.
The FLS, which opens its doors in August, will run for 18 months.
Fisher said the 18-month period is designed to be long enough for
banks to get the lending done but short enough to prevent them delaying.
“We need the lending growth now,” Fisher said.
-London newsroom: +44 207 862 7491 email:
drobinson@marketnews.com
[TOPICS: M$B$$$,M$$BE$]
