Lloyds Banks as Northern Rock (feb 08), Bradford & Bingley (sep 08) and Royal Bank of Scotland (oct 08) has the British Government (BG) as main shareholder (now over 50%). Would it be the last bank?
Good or bad thing? soon to know but at least the BG is doing its best in order to smooth down the credit crunch by injecting tier 1 capital to its banks. In this particular case, a new scheeme is in place by which all the funding (€31.300 m in 09 and 10) provided by BG has the specific purpose of giving loans or mortgages . I find this very innovative.
I havent heard of such meassures anywhere else in Europe....have you? if, so please comment. In my opinion, this type of meassures are one of the positve counter balances of such a hard momentum. By "incentivising" giving loans to increase spent while interest rates are this low, at least the UK economy will not drop as others in EU.
