A lack of confidence has undermined the Government's efforts to kickstart the ailing economy and has perhaps manifested itself most corrosively in the failure of the banks to fill the lending void left by the withdrawal of foreign financial institutions. The latest government initiative to free the flow of money involves the establishment of the asset protection scheme, under which the banks can, for a fee, "park" their toxic debt in a vehicle underwritten by the taxpayer. Royal Bank of Scotland (RBS) has signed up to the scheme but Lloyds Banking Group is still on the outside, having failed to agree terms with ministers.
A lack of confidence has undermined the Government's efforts to kickstart the ailing economy and has perhaps manifested itself most corrosively in the failure of the banks to fill the lending void left by the withdrawal of foreign financial institutions.
