Sounds like more fake free market economy to me.

Here's the guff from the bank of Switzerland/Vatican sorry i mean England.


Funding for Lending Scheme

"The Bank and HM Treasury launched the Funding for Lending Scheme (FLS) on 13 July 2012. The FLS is designed 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.

The FLS allows participants to borrow UK Treasury Bills in exchange for eligible collateral, which consists of all collateral eligible in the Bank’s Discount Window Facility. The fee charged and the amount participants are able to borrow will depend on participants’ lending growth, as described in the Documentation.

The Bank and HM Treasury announced an extension to the FLS on 24 April 2013. This extends the scheme by one year to allow participants to borrow from the FLS until January 2015, with incentives to boost lending skewed towards small and medium sized enterprises (SMEs). The FLS will also be expanded to count lending by banking groups involving certain non-bank providers of credit to the UK real economy."

www.bankofengland.co.uk/markets/Pages/FLS/default.aspx