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Banks: Finance

Volume 488: debated on Friday 27 February 2009

To ask the Chancellor of the Exchequer (1) what assessment he has made of the effect on the availability of credit to customers of the credit scoring methodologies of those banks in which the Government holds shares; (258556)

(2) what assessment he has made of the effect on availability of mortgages of the affordability calculations used to determine eligibility for a mortgage made by those lenders in which the Government has a significant shareholding.

Where there is public sector investment in financial institutions these stakes are to be managed on a commercial basis by an arm's length company, UK Financial Investments Ltd (UKFI). UKFI's objective is to protect and create value for the taxpayer as shareholder with due regard to the maintenance of financial stability and to act in a way that promotes competition. Decisions concerning risk assessment of individual borrowers remain commercial decisions for banks and building societies.