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Banks: Finance

Volume 497: debated on Tuesday 13 October 2009

To ask the Chancellor of the Exchequer pursuant to the answer of 13 May 2009, Official Report, column 847W, on banks: finance, how much of the first loss in respect of the Royal Bank of Scotland Group and Lloyds Banking Group has been written down; and when he expects the Asset Protection Scheme to be fully operational. (289917)

The announcements made in February and March set out an in principle agreement with the Royal Bank of Scotland (RBS) and the Lloyds Banking Group (Lloyds) with regard to their participation in the Asset Protection Scheme (APS). Details about the financial performance of RBS and Lloyds, since they agreed in principle to participate in APS, are set out in their interim management statements of 5 August and 7 August respectively.

The final agreements remain under negotiation. Further announcements will be made in due course.

To ask the Chancellor of the Exchequer pursuant to the answer of 11 May 2009, Official Report, column 535W, on banks: finance, which banks are participating in the Asset-backed Securities Scheme; and what the total monetary value is of the additional loans made available to each such bank. (289918)

The ABS guarantee scheme was made available at Budget 2009, extending funding options open to banks and building societies alongside other Government support schemes, including the existing Credit Guarantee Scheme. Demand for the guarantees will depend on eligible institutions' access to alternative sources of funding and demand for mortgage credit in the economy.

A list of eligible instruments guaranteed under the scheme will be made available by the DMO at:

http://www.dmo.gov.uk