Barring HSBC, the top five banks of UK have signed up for Bank of England’s funding for lending scheme aimed at small businesses and individuals. Total of 13 institutions and building societies have come onboard and they account for around 1.2 trillion pounds worth of lending and 73 per cent of the market.

Meanwhile, there is uncertainty over the ability of the scheme to increase lending to small businesses. Mortgage applicants, however, would have a greater choice. Bank of England has said that the scheme would only be termed a success if banks lend more than what they otherwise would have.

Suffering from the double dip recession, funding for lending is the key to get the UK’s economy up and running by making cheaper loans available and giving the much needed confidence to businesses to invest.