By Sam Holmes
SINGAPORE--The Bank of England's new measures to support the U.K.
banking sector through liquidity facilities are credit positive for
the country's banks, Moody's Investors Service said in a research note
Monday.
The new measures, which include an extended collateral term repo
facility and a new "funding-for-lending" program, are expected to
provide cheap funding to the sector for several years and "ensure
banks' continued access to funding during market volatility," Moody's
said.
"By lowering banks' funding costs, the scheme would benefit banks'
lending margins," it said.
"But the scheme's ultimate goal is to get credit flowing to households
and businesses and spur economic growth. In that vein, the scheme
would be likely to channel more funding to small and medium-sized
enterprises, thereby easing refinancing concerns for that sector."
Write to Sam Holmes at samuel.holmes@wsj.com
(END) Dow Jones Newswires
June 17, 2012 22:59 ET (02:59 GMT)
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