Lloyds Banking Group Plc (LON: LLOY) has been “heavily reliant” on the England’s central bank and other government-sponsored liquidity schemes, according to a newly released company fundraising prospectus.
The prospectus stated that the bank currently has outstanding borrowings and guaranteed debts of about 165 billion GBP, or about $274 billion USD, under different government sponsored programs and central bank schemes designed to protect banks during the financial crisis.
The document was released by Lloyds on its website on November 3rd and has revealed just how reliant the bank is on support from public entities. Currently Lloyds Banking Group has a balance sheet of approximately 1 trillion-pounds (or $1.67 Trillion USD), meaning that between 1/7th and 1/8th of Lloyd’s loans are supported in some way by the central bank and other public liquidity schemes.
It was revealed on Sunday that a 165 billion GBP in loans and guarantees from the Bank of England. Although analysts were well aware that Lloyds was participating in various government guarantees and loan programs, the extent of dependence upon the government was unknown.
A London-based spokesman for Lloyds, Shane O’Riordain, commented that Lloyds is just one of many lenders using “government-sponsored liquidity schemes.”
