The Financial Services Authority (FSA) has relaxed its lending rules in an effort to boost lending amongst banks and building societies.
According to reports in the Financial Times, the FSA will no longer require lenders to hold additional capital against loans under the Funding for Lending Scheme (FLS).
It is hoped the move will pave the way for more lending to individuals and small non-financial businesses in the UK.
Thirteen institutions such as Barclays, Leeds Building Society, Lloyds Banking Group and RBS Group to name but a few, have signed up to participate in the multi-billion pound programme since its launched in August.
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