Since 2007, the Treasury has made a series of interventions to support the financial stability of UK banking. These interventions supported four broad aims: to protect depositors; maintain liquidity and capital for UK banks through the period of market closures; and to encourage banks to lend to creditworthy borrowers.
In line with international good practice, the Treasury and the National Audit Office (NAO) have worked to ensure transparency of the scale and costs of the various Government interventions. The NAO set out a summary of the support in our December 2009 report Maintaining financial stability across the United Kingdom’s banking system. We updated this in December 2010 with Maintaining the financial stability of UK banks: update on the support schemes.
This Report on HM Treasury’s Resource Accounts for 2010-11 sets out the scale and costs of the Government’s financial interventions as at 31 March 2011, on the same basis of disclosure as our previous reports to Parliament. It shows how these numbers reconcile to the Treasury’s Resource Accounts and highlights certain additional disclosures in the notes to the Resource Accounts on the financial stability interventions.