During the first three months of the year, small businesses have gained over £600m in funding from high street banks, according to a report from the Bank of England.
The FLS Scheme was launched by the Bank of England in 2012. Its aim was to incentivise banks and building societies to boost their lending to the UK real economy.
It does this by providing funding to banks and building societies for an extended period, with both the price and quantity of funding provided linked to their lending performance. In 2014, the scheme was adapted to focus on lending to small businesses.
On Thursday, the central bank released its quarterly figures regarding the progress of the FLS scheme. The statistics help uncover the net quarterly flow of lending to UK small and medium-sized businesses from select banks.
The report shows that net lending to SMEs increased by £635m, with Lloyds banking group being named as the biggest contributor, as they lent £425 to small businesses within the first three months of the year.
The latest figures symbolise a huge success for both small businesses and major British lenders, particularly when you contrast it to the results during the final quarter of 2014. Lending to small businesses by banks taking part in the scheme fell by £800 million in the final 3 months of last year.