Implementing support for the banking system
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Released 13 October 2008
The Government is today taking decisive action to ensure our banking system
remains on a sure footing in the face of continuing and exceptional instability
across the world’s financial markets.
The Government is doing this by implementing the comprehensive set of
measures announced last week, to make commercial investments in British banks
and building societies to put them back in a sound position and support the long
term strength of the banking sector and wider economy.
These actions will also help to build
confidence and security in our banking system and provide greater protection for
consumers. Customers can continue to use all of their banking facilities in the
By providing banks with increased levels
of capital - through the purchase of shares - and by introducing a guarantee
scheme to encourage between banks, these actions will restore confidence in the
banking system and ensure banks are more willing to lend to individuals and
businesses. Because the agreements the Government has made with banks will be
priced on commercial terms, taxpayers will be rewarded for providing this
support to the banking system.
1. For full technical details of today's
announcements, see: Treasury statement on financial support to the banking
For more information for consumers, visit the
website of the Financial
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Article Published/Sorted/Amended on Scopulus 2008-10-13 14:55:53 in Business Articles