FLA urges government to act now to support non-bank lenders
The Finance & Leasing Association has continued calls for the Government and the Bank of England to take immediate action to support the non-bank lending market.
The calls come as new FLA figures released today show the number of COVID-19 related requests for forbearance reached more than 1,623,000 in the twelve weeks to 29 May 2020. Of that total, 88% (1,424,000) had been granted by the end of that period, the FLA said. The FLA has put forward a Term Funding Pipeline proposal to tackle the problem.
Stephen Haddrill, director general at the FLA, said: “Figures released today of a record fall in the UK economy in April of more than 20% highlights the urgent need for the Government and Bank of England to enable all lenders – bank and non-bank – to access the funding required to meet the huge demand for forbearance and new credit as the economy reopens.
“FLA members have a track record of supporting businesses and households during difficult times, with our latest figures for April showing new lending of more than £4.7bn despite the lockdown. We have put forward a Term Funding Pipeline proposal, which we believe will open up the current financial support schemes to a wider group of lenders – there should be no further delay, action is needed now.”
|Apr 2020||% change on prev. year||3 months to Apr 2020||% change on prev. year||12 months to Apr 2020||% change on prev. year|
|Total FLA new business (£m)||4,725||-60||25,917||-27||131,047||-5|
|Business (asset) finance (£m)||1,612||-47||6,624||-29||32,899||-6|
|Consumer finance (£m)||3,113||-64||19,293||-26||98,147||-5|
|Within the above:|
|Motor finance (£m)||607||-86||8,233||-38||42,840||-9|