The banks welcome today’s announcement by the Bank of England.
The collateral swap arrangement is an innovative and unique policy response. The banks are participating in this arrangement and expect it to make a significant contribution to alleviating the pressures in the UK money markets. Restoring confidence in the wholesale funding market will strengthen the financial system and the stability of our economy.
The banks have been in close dialogue with the authorities as the global crisis has unfolded. These discussions have focused on market conditions, their consequences and mitigating actions. The banks will continue to work closely with the Government, the central bank and the regulator to keep markets open and remove obstacles to ensuring that credit remains available to businesses and households.
