Bank bailout plans hailed - commercial mortgages

21 January 2009

The government's recently announced package of support for lenders has been hailed by the financial sector.

Plans to boost the credit guarantee scheme and offer protection for assets were welcomed by the British Bankers' Association.

The organisation stated that the move will help to improve liquidity, which in turn could allow lenders to offer more commercial mortgages.

Banks' "continuing commitment" to supporting the economy through the turbulence has been underscored by the announcements, it added.

The Confederation of British Industry also expressed its approval of the aid package, with director general Richard Lambert praising ministers for their decisive action.

He commented: "The viability of ordinary businesses was under threat, putting jobs and investment across the land at risk. The government needed to be bold and it has been."

Mr Lambert went on to say that the measures, if implemented fully, could help to tackle the recession and boost stability.