Government to provide support to banking industry - Loans - News - Moneyfacts

News

Government to provide support to banking industry

Government to provide support to banking industry

Category: Loans

Updated: 31/10/2008
First Published: 10/10/2008

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The government has announced a financial package to support the UK's banks.

In a move that could help those seeking unsecured loans, eight of the main financial institutions will have £25 billion made available to them in exchange for the government receiving preference shares.

And according to the Treasury, the plan will "ensure the stability of the financial system" as well as protect "ordinary savers, depositors, businessmen and borrowers".

It is hoped that greater liquidity will come as a result, while the extra funding will give banks greater confidence to lend to others, making more finance available for consumers.

The support package has been widely welcomed, with Nationwide Building Society chief executive Graham Beale stating: "Clearly, in view of unprecedented market developments, radical action was needed."

He added that the move would provide reassurance to savers and borrowers, a view that was echoed by HSBC.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Regulator to take closer look at high-cost credit

When used well, credit can be a viable way to help make ends meet and balance the books – but the problem comes when that credit is of the high-cost variety. The regulator has will be taking a closer look at the sector to see what else can be done.

The payday loan market is still broken

The payday loan market has been under fire a lot in recent years, and as a result, the financial regulator stepped in. But has it made a difference? Unfortunately, it looks as though there’s still a lot of work to be done.

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…
 
Close