Mervyn King is to meet with the bosses of major UK banks to discuss the liquidity problems affecting world credit markets.
The banks are likely to tell King he needs to do more to reassure creditors that the Bank of England will help if needed.
The banking industry is likely to ask the Bank of England to guarantee finance to any UK lender that suffers a cash shortage.
The news comes a day after the FSA warned that malicious rumours about the stability of the UK banking system were being used to make money from share dealing.
The problem caused shares in HBOS, one of the UK’s biggest banking groups, to fall by as much as 17% on Wednesday.
If you would like to comment on this story, contact:
Tel: 020 7484 9805
e-mail: [email protected]
Smashed initial target
Since November 2008
Share issue oversubscribed
PARTNER INSIGHT: For many advisers, outsourcing to a multi-manager or discretionary fund manager makes sense, allowing them to focus on the adviser-client relationship
Events, information and other services