BoE announced further measures to ensure the Term Funding Scheme with additional incentives for Small and Medium-size Enterprises (TFSME) can continue to support lending to SMEs through the Bounce Back Loan Scheme (BBLS). In addition to the change announced in May, whereby banks will be able to extend the term of some TFSME funding from four to six years, BoE will allow TFSME participants to extend a part of their borrowings again, to a total term of up to ten years.
Participants will be able to extend the term of TFSME loans by up to a further four years at the point at which the existing six-year TFSME loans mature. The amount of TFSME funding that can be extended will be capped at the amount of BBLS lending on TFSME participants’ balance sheets at that point. TFSME documentation will be updated in due course to reflect this change and to provide further operational details. The TFSME was launched in March 2020 as part of the measures to respond to the economic shock from COVID-19. In May 2020, BoE announced that TFSME participants would be able to extend the term of some of their TFSME funding to align with the term of loans made through BBLS, which was set up to enable businesses to access finance more quickly during the COVID-19 outbreak.
Related Link: Notification
Keywords: Europe, UK, Banking, COVID-19, SME, BBLS, Term Funding Scheme, Credit Risk, Loan Guarantee, BoE
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous ArticleAPRA Updates Validation and Derivation Rules in September 2020
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.
The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.