Cash injection for banking industry

The banking industry has been given an additional cash injection from the Bank of England, which has decided to offer up a further £5 billion to help increased liquidity in the banking sector.

Banking officials have been expressing concern over difficulties in raising funding, and the central banks hopes that a further £5 billion on top of the £6 billion already offered will help to ease the problem.

Industry officials have been calling for further funding to be injected into the banking sector, with many banks having to cut back on lending and increase their interest rates as a result of the difficulties and expense of raising finance on the wholesale money markets – something that has affected by the financial markets and accessibility to finance for consumers.

Both the Council of Mortgage Lenders and the British Banker’s Association have been calling for assistance from the Bank of England, and the additional cash injection is likely to be welcomed by the banking sector.

However, whilst lenders continue to decrease accessibility and increase rates consumers are continuing to face increased difficulties when it comes to getting finance.

Many lenders have also made their eligibility criteria more stringent in order to minimise the risk of lending to higher risk consumers.