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Banks: Finance

Volume 487: debated on Monday 9 February 2009

To ask the Chancellor of the Exchequer with reference to the Statement of 13 October 2008, Official Report, columns 539-472, on financial markets, which institutions have taken up (a) the Government scheme for new lending between banks and (b) the £37 billion made available for bank recapitalisation; and what assessment he has made of the effect of these arrangements on levels of inter-bank lending. (250661)

RBS Group plc, Lloyds TSB plc and HBOS Group plc have announced the terms on which they are participating in the Government’s recapitalisation scheme. Details are set out in the Placing and Open Offer Agreements that are available in the Libraries of both Houses of Parliament.

These banks are also eligible to use the Government’s Credit Guarantee Scheme (CGS), under which up to £250 billion of bank lending will be guaranteed. Participating banks have accessed some £100 billion of funding under the CGS so far. A list of participating institutions is published by the Debt Management Office at

Figures for individual banks are confidential. As the Chancellor of the Exchequer noted on 19 January, these guarantees have been successful in helping to bring down the inter-bank lending rate.