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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 Bank and HM Treasury announced an extension to the FLS on 24 April 2013, which was amended on 28 November 2013 and on 2 December 2014. This allows participants to borrow from the FLS until January 2016, with incentives to boost lending skewed towards small and medium sized enterprises (SMEs). Usage and net lending data relating to the extension to the FLS can be found here.