Bank of England urges banks to keep the lending taps open

FILE PHOTO: People wearing masks walk past the Bank of England, as the spread of the coronavirus disease (COVID-19) continues, in London, Britain

The Bank of England called on lenders on Friday to provide enough credit to companies to see them through the coronavirus crisis as the government prepares to scale back its lending guarantee schemes.

“It is in banks’ collective interest to continue to support viable, productive businesses, rather than seek to defend capital ratios by cutting lending, which would have an adverse effect on the economy and therefore could have an even greater negative effect on banks’ capital ratios,” the BoE said.

Was it worth reading? Let us know.