Aldermore, the new British 'challenger' bank, is being provided with legal support by national law firm Shoosmiths, as it continues to participate in the government backed Funding for Lending scheme (FLS).
Launched by the Bank of England and HM Treasury last August, the scheme has been designed to incentivise financial institutions to boost lending to UK households and businesses. The Bank of England & HM Treasury announced recently that the FLS scheme is to be extended until January 2015.
Data released recently by the Bank of England confirms that during the first quarter of 2013 Aldermore's net lending of £230 million to the UK economy was in the top six of all the lenders in the scheme, at a time when a number of the UK's largest banks are reducing their overall lending.
Aldermore CEO Phillip Monks said: "FLS is an important scheme designed to provide both businesses and homeowners with access to competitively priced funding. We're delighted to participate in the scheme and are grateful to for the legal support provided by Shoosmiths, which enables us to become the first challenger bank to participate in FLS."
Business Secretary Vince Cable visited Aldermore's Reading office recently to meet with Monks and to share views on the role challenger banks must play in supporting SMEs in order to re-stimulate the UK economy.
James Keates, partner and head of Shoosmiths' restructuring and insolvency team, explained: "FLS works by allowing banks and building societies to borrow UK treasury bills from the Bank of England for up to four years.
"Aldermore is putting up residential and commercial mortgage loans to the bank of England as security against that lending, and the more it lends, the more it will be able to borrow.
"We've helped Aldermore borrow hundreds of millions via the FLS, which means a potentially huge lending injection at competitive prices for many of its customers."
Launched in 2009 and described as offering 'a fresh, dynamic approach to banking', Aldermore is one of the best capitalised banks in the UK.