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.
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: