As part of the government's strategy to enhance financial stability and increase lending to homeowners and businesses, they yesterday announced the introduction of the asset protection scheme, aimed at increasing confidence by reducing uncertainty about banks' asset valuations and cleaning up balance sheets.

The Royal Bank of Scotland (RBS) is keen to take advantage of this and as part of the deal will commit to lending £25bn, with £9bn of that aimed at homeowners.

This follows the news that Northern Rock is committing to lend £14bn over the next two years and Lloyds Banking Group are also to pledge billions of pounds for extra mortgage loans.
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