The FSA decided to bring up the guarantee on savings from £35,000 to £50,000 in order to recover the confidence of investors. The confidence disappeared because banks refused to lend to one another, fearing that they would need all their money themselves. Trying to avoid liquidity problems, the Bank of England will now accept a wider range of collateral in exchange for fresh funds. In this way, banks will have access to cash accounts to meet the needs of their clients.
http://www.guardian.co.uk/business/2008/oct/04/bankofenglandgovernor.banking1
Jolien De Baerdemaeker
dinsdag 14 oktober 2008
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The FSA decided to bring up the guarantee on savings from £35,000 to £50,000 in order to recover [restore] the confidence of investors. The confidence disappeared because banks refused to lend to one another, fearing that they would need all their money themselves. Trying to avoid liquidity problems, the Bank of England will now accept a wider range of collateral in exchange for fresh funds. In this way, banks will have access to cash accounts to meet the needs of their clients.
Good flow, clear logic and good linking
olaf
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