§ Mr. Harveyasked the Chancellor of the Exchequer if the Government will consider providing guarantees to British banks experiencing difficulties as a consequence of the international debt and liquidity crisis, similar to those recently extended by the American authorities; and if he will make a statement.
§ Mr. Ian StewartThe possibility that British banks might experience liquidity difficulties for this or any other reason is entirely hypothetical. However, the Bank of England has on occasion in the past acted to prevent general damage to confidence in the banking system and would do so again if the circumstances made this necessary.