The Bank of England (BofE) on Friday launched  its Funding for Lending Scheme (FLS)  that will allow U.K. banks and building societies to borrow up to 5% of their stock of existing lending to the real economy, which is equal to roughly £80 billion ($125 billion) across all potentially eligible banks and building societies.

The plan is designed to boost new lending growth in the U.K. real economy.  From August 2012 to February 2014, banks and U.K. building societies will be able to borrow U.K. Treasury Bills from the BofE for up to four years against collateral, securitizations.

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