London (Ask4debtconsolidation) 31 August, 2009:The central bank yesterday announced for doing the special investigation because of the downgrade assets accepted by building society. The lenders appreciate this move who were blaming the more pessimism of rating agencies.

The bank of England made it clear that before determining the impact of downgrading on security's eligibility, it will seek to find out the real circumstances. The BoE doesn't accept the security less than AAA grade.

Before some time, the banks and the building society were dependent on accepting the securities given rating AAA by any two of three rating agencies- Fitch, Standard & Poor's and Moody's.

The bank will now accept the covered bond supported by loans to the small and medium sized enterprises. The new rules of BoE seems a strange attitude as there is no such thing as an SME covered bond- yet.

There is more pressure on UK lenders to encourage the lending to small enterprises. The new rule of collateral can assist them to get the amount for improving their business. There are some banks ready to attempt this deal and want to provide the opportunity to be ahead. Back to News