Government's financial bail-out welcomed - Loans - News - Moneyfacts


Government's financial bail-out welcomed

Government's financial bail-out welcomed

Category: Loans

Updated: 31/10/2008
First Published: 20/10/2008

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 It is now over 6 months old so the content may be out of date.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 that it is investing £37 billion to help stabilise the UK's banks.

Commercial investment is to be made in Royal Bank of Scotland, as well as in Lloyds TSB and HBOS when a merger of the two is completed.

It is hoped that the money will benefit businesses, borrowers and savers by strengthening the economy and the move has been welcomed by

Spokesman for the site Darren Cook noted that banks may now have more confidence to lend to each other, helping those seeking secured loans.

And he explained that although consumers may not see a short term benefit, "no action by the government would have resulted in a possible meltdown of the banking system, which would have adversely affected every household in the UK".

Last week the Bank of England took some pressure off those with secured loans by cutting the official base rate of interest by 0.5 per cent.

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 Any products featured may be withdrawn by their provider or changed at any time.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…