Bank chiefs to meet with BoE governor

20 March 2008

The heads of all major UK banking institutions are to meet with Bank of England governor Mr Mervyn King later today to ask the Bank to do more during this current financial crisis.

Bank heads are widely expected to ask Mr King to offer assurances that the BoE will guarantee financial support should any more UK lenders run into trouble.

This comes hot on the heels of the Financial Service Authority [FSA] decision to investigate possible unscrupulous trading in the wake of mortgage lender HBOS losing 20 per cent of its value.

The British Bankers Association is confident that the BoE will act, as Angela Knight, its chief executive, said to the BBC's Today programme.

"The Bank of England is very keen to ensure that we have good strong confidence in our market - after all we've got good strong banks," she explained."We're all facing as I say a particularly unusual situation in this credit crunch."

The banks will be looking to Mr King for reassurance and guidance as rumours and fears affect already turbulent markets.

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