The government has announced plans for a new £100bn support package designed to help banks increase lending levels and protect the UK economy from the eurozone crisis.
The plans for the lending scheme were launched by George Osborne at the Chancellor’s annual address at the Mansion House last night.
Under the scheme working jointly with the Treasury, banks will be able to swap loans to individuals and firms for government bonds, as long as they agree to lend out the money at cheap rates.
Bank shares increased this morning, Royal Bank of Scotland and Lloyds shares were up almost 4%, while Barclays was 2.75% higher.
June 15, 2012