The British government says sit will make more than $63 billion available to three major banks (The Royal Bank of Scotland, Lloyds, HBOS). If the banks take full advantage of the capital infusion the government could become the largest shareholder in each.
The U.S. Federal Reserve, the European Central Bank, the Bank of England and the Swiss central bank, have also said they will offer commercial banks unlimited loans at a fixed interest rate.
Sunday, French President Nicolas Sarkozy announced that 16 European governments agreed on a plan for banks to lend money to each other.
Mr. Sarkozy said after a Paris summit that no country acting alone can do anything constructive during this global economic crisis.
Also Sunday, World Bank and International Monetary Fund officials meeting in Washington agreed to protect poor and vulnerable countries during the financial crisis.
The global economic crisis began with a drop in the U.S. housing market and the inability of some Americans to repay their home loans. Several high-profile financial companies that invested in these loans collapsed, and many banks now are reluctant to lend money to consumers, businesses and each other.
Major European governments and the United States have stepped in to take control of some sinking lenders, but at great expense to taxpayers.
The crisis sent stock indexes plunging around the world last week.
Some information for this report was provided by AFP, AP and Reuters. Reported by VOA News.
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