Shadow banks told Treasury closing in on SME rescue scheme plan

Industry News | 12/06/20

The Treasury is racing to throw a taxpayer-funded lifeline to so-called shadow banks struggling due to coronavirus chaos. In an email sent by industry lobby group UK Finance, specialist lenders which have no banking licence have been told that Treasury officials are closing in on a plan which would allow some of them to offer vital state-backed loans to struggling small businesses. The solution being discussed would allow mainstream banks to provide funding to alternative lenders through a special purpose vehicle, which would be linked to the British Business Bank so that taxpayer support is available.

Source: The Telegraph