We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Article Summary - Research Paper Example

Comments (0)
Bank of England extends Funding for Lending scheme Article summaries(bbc.co.uk) [Pick the date] author: Summary Plans to expand the lending scheme have been announced by The Bank of England which was established to help businesses and households. It has been extended till 2015…
Download full paper
Article Summary
Read TextPreview

Extract of sample
Article Summary

Download file to see previous pages... Now as per the new initiatives, the banks’ lending loans would be able to borrow extra ?5 from FLS for every ?1 they lend to businesses (BBC, 2013, April 24). The extension has been widely accepted but some economic experts still feel that more aggressive actions need to be taken in this regard. Upcoming report for national statistics is expected to show that economy remains flat. Funding for Lending Scheme (FLS) was introduced in August 2012 to bring an increase in bank lending by around ?60bn. Main hope is that this initiative will help keeping economy out of recession and improve the lending and borrowing cycle. Banks borrow finds from Bank of England cheaply and the then passes it on as low interest loans to households and small businesses. The main objective is give incentives to businesses to borrow more money from the banks but there are fears that individuals might not want to borrow much at the current moment of time. Initial responses from the scheme has not been as encouraging as only few banks stepped in the first quarter but the program gradually took off. This scheme has negatively affected the savers and investors in bank deposits as they now have less interest to get and the lending institutions are not pushed to encourage people to invest in savings accounts. Savings account offerings have gone down to 3% now. The mechanism for Funding and lending scheme is that when lenders approach bank of England, they swap their assets with the bank. And treasury bills are provided to them in return. Then the banks borrow cheap money from other lending institutions in wholesale financial markets with the backing of these treasury bills. The commercial banks are then able to use these bits of paper as top quality backing with which to borrow cash in the wholesale financial markets, from other lenders. With the Treasury's backing, the idea is that they will be able to borrow funds at very cheap rates. To keep performance levels in check initially the banks will access 5% of funds they lend and as their lending increases, they can borrow more. On the other end if the lending decreases, then the banks will have to pay interest of 1.5% as compared to just 0.25% at initial stage. For the protection of tax payer’s bank of England uses the concept of hair cut. The banks will have to pledge the collateral more than worth of papers being issued by the Bank of England. In this case if a bank borrows ?1 Treasury bill then it has to pledge more than ?1, amount such as ?1.10 to ?1.20. So if the value of asset falls then tax payers would be somewhat protected as the bank of England would not suffer top slice of the loss. Analysis: Positive Chain reaction: On the face of it, it seems to be a good scheme as more economic activity can be generated on microeconomic level and the economy of England can have a positive effect due to that. If more money is available to the people than they can open new businesses, which in turn will generate more jobs. This can lead to increase in purchasing patterns of general public, which is healthy for businesses in return. Due to increased jobs and earnings, people have more money available to save, which is usually deposited in banks. The banks can then lend that money to businesses and earn their interests as well. So this scheme is aimed to achieve this positive chain reaction. Many economists has positive expectations from this scheme and there is a hope among representative party in England that this scheme might be a breakthrough initiative ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Psychological Journal Article Summary and Analysis
To this end, the authors distinguish between acquisition, which refers to the short-term acceptance of the disliked vegetable in exchange for a reward, and maintenance, which refers to the long-term acceptance of the disliked vegetable even after the exchange for a reward does not apply.
6 Pages(1500 words)Research Paper
Article Summary
Some of these issues include client welfare, multicultural sensitivity, values, and countertransference (p.125). Because of the majority Christian beliefs in the United States, these ethical issues are particularly relevant for counselors who rely on the power of prayer within sessions.
5 Pages(1250 words)Research Paper
Research Article Summary
As per the statistics of 2001 Almanac of Chinas Health, about 10 million females undergo induced abortions in China annually out of which 20% to 30% is constituted alone by unmarried young women (Liu & Liu, 2001). Also, teenage pregnancy is
4 Pages(1000 words)Research Paper
Journal article summary
er at various universities in the US including London School of Economics and Political Science, University of Washington, Arizona State University, and as the inaugural endowed chair of the Margret E. and Paul F. Harron for the past two decades. In her article titled
4 Pages(1000 words)Research Paper
Journal article, Summary and critique
The age of self-mutilators varies; statistics indicate that most incidences occur between ages of 16 to 25 years. Self-mutilation
3 Pages(750 words)Research Paper
Article review, summary, critique and reasons for choosing this article
xt to appropriateness, benefits and its significance in ‘risk societies’ followed by the personal experiences of the subjects and their opinion regarding touch practices. The study revealed the participants’ confusion and need for discussion regarding touch and all except
3 Pages(750 words)Research Paper
Article summary
he search methods involved a review from nursing, psychology, neurocognitive, and behavioral disciplines with empathy and pain to collect information useful to make an inference. From this search, empathy emerged as a thought for others influenced by memory, knowledge, and
1 Pages(250 words)Research Paper
Article summary
nority’s attitude toward H1N1 vaccine acceptance particularly the black and Hispanic parents of infants and children (aged 0 –18 years) in Atlanta, Georgia, to understand correlates of vaccine hesitancy and refusal and to identify intervention points to increase vaccine
3 Pages(750 words)Research Paper
Research Article Summary
This paper summaries the research conducted by Lisa Young and Marion Nestle presented in the article titled “The Contribution of Expanding Portion Sizes to the US Obesity
2 Pages(500 words)Research Paper
Article Summary & Environmental Injustice
Fracking is one activity that has been on the rise in the recent past. Fracking refers to the use of hydraulic fracturing to open up oil and gas resources in many parts of the
4 Pages(1000 words)Research Paper
Let us find you another Research Paper on topic Article Summary for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us