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He highlighted the joint decision by ministers and the Bank of England to stop backing mortgage lending through the Funding for Lending scheme.
"PLR pays authors for lending through a local authority library.
There are two types of online P2P platforms: for consumer lending through companies like Zopa, or business lending through the likes of Funding Circle.
The bank is cleaning up its lending through third-party reviews of where the money goes.
So do cross-border borrowing and lending through stock and bond markets.
President George Bush's budget, in February, proposed big subsidy cuts for those lending through government-backed programmes.
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Santander, Halifax and Barclays, which lends through Woolwich, all say they will consider such cases.
Allowing private investors to lend through legal entities will help the government tame the country's underground lending market, where annualized interest rates can reach 100 percent.
The bank, which lends through its Chase Mortgage unit, has begun to "systematically re-examine" its filings to verify that they meet legal standards, a spokesman, Tom Kelly, said.
First, the government lends through the William D. Ford direct loan programme, which competes with private lenders and has about a quarter of the student-loan market.
Why is this new bank supposed to be only a virtual bank – that is, a government pot of money lent through other banks – rather than a proper bank?
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