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Banks: Compensation

Volume 481: debated on Monday 27 October 2008

To ask the Chancellor of the Exchequer what mechanisms he plans to put in place to ensure that the banking rescue package does not disadvantage banks which do not seek recourse to it. (226264)

It should be a commercial decision for each bank whether or not to take part in the package of support measures set out by the Chancellor of the Exchequer on 8 and 13 October 2008. The investments being made by the Government are on commercial terms.

As the Chancellor made clear in his statements, in reviewing applications for the scheme, the authorities will give due regard to the extent to which institutions have substantial business in the UK and their role in the UK banking system and overall economy.