The Bank of England and the Treasury launched UK's Funding for Lending Scheme (FLS) on 13 July 2012. The Funding for Lending Scheme was designed to encourage banks and building societies to boost their lending to all sections of the UK's economy.
Participants were permitted to borrow an initial amount of up to 5 per cent of its stock of existing loans in UK Treasury Bills, in exchange for collateral.
The FLS was extended on April 24 2013 by one year to allow participants to borrow from the FLS until January 2015.
On November 28 2013 it was announced that FLS would not longer be permitted to expand household lending, such as borrowing for mortgages, and instead lenders would have to focus on lending to businesses.
On November 28 2013, it was reported that Bank of England governor Mark Carney had been responding to repeated questioning on how he was going to counter housing bubble fears when he ended incentives for household lending in the Funding for Lending Scheme.