Business briefs: Clydesdale linked to swap compensation | BoE £5bn funding plans

Published on 18/07/2012 00:00

The Financial Services Authority is to extend the reach of its compensation scheme for customers who were mis-sold complex interest rate swap products.

Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland last month agreed to redress customers and it is believed that more banks, including National Australia Bank’s Clydesdale and Yorkshire brands, will follow suit.

Clydesdale said: “The bank does not comment on rumour or speculation but would always work with the FSA in relation to matters of this kind.”

Bank plans second £5bn funding

The Bank of England will offer £5 billion of six-month funding at its second extended collateral term repo operation today, part of efforts to bring banks’ funding costs down and get credit flowing through the economy.

The central bank allotted the full £5bn in the first monthly auction last month, though the funds cleared at the minimum 25 basis point spread above bank rate, suggesting that the Bank was not flooded with high bids for the funds. The Bank announced in June that it was activating the scheme, which was set up in December.