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Bank of England sets out plan to phase out credit scheme by early 2018

LONDON, Nov 30 (Reuters) - The Bank of England said on Monday that it would phase out its Funding for Lending Scheme for small business lending over the next two years, rather than wind it up as previously planned at the end of January 2016.

The FLS was launched in 2012 to boost mortgage and other lending, but has changed shape over the period to encourage banks to lend to small businesses.

"The announcement today continues that tapering, supporting continued improvement in SME (small and medium-sized enterprise) credit conditions as the economic recovery takes hold, while gradually withdrawing that support over the next two years," BoE (Shenzhen: 000725.SZ - news) Governor Mark Carney said in a statement. (Reporting by David Milliken, editing by Andy Bruce)