Moral hazard

The Bank of England and HM Treasury officially launched the "Funding for Lending Scheme" (FLS) on Friday 13 July (read the announcement and details here), yet another covert operation to shore up the banks under the disguise of helping small businesses and households to access cheaper credit and thus stimulate the economy.
Moral hazard occurs when a party insulated from risk may behave differently than it would behave if it were fully exposed to the risk.