23/09/2009

Banks sitting on tax payer cash

Hundreds of billions of taxpayer cash was pumped into the bankrupt banking sector and interest rates cut to 0.5% to enable the banks to lend out to the wider economy.

 

However, are they doing it 

Banks instead of lending the money out are in effect depositing as much as £160 billion with the Bank of England as excess reserves to earn risk free interest from which negates the Bank of England's money printing / Quantitative Easing programme that now stands at £175 billion.