State to back banks' risky lending

12 April 2020 - 00:29 By HILARY JOFFE

The government and the banking sector are looking to establish a "Funding for Lending" scheme in which the government would back the banks to take on riskier lending to help customers survive the Covid-19 crisis.

The scheme - which could be in the form of a government guarantee for the banks - would allow the banks to assist distressed businesses they would not normally be able to lend to, because the government would share some of the losses that might be incurred if these customers default...

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