Credit Guarantee Scheme

The Credit Guarantee Scheme is a 2008 initiative from the UK government’s HM Treasury which forms part of its measures announced on 8 October 2008 to ensure the stability of the financial system. The goal is to shore up the system and protect savers, businesses and investors by:

• Providing adequate short term liquidity
• Recapitalizing UK banks and building societies to give them the resources to restructure their finances to the extent required to fulfill their important role as lenders
• Ensuring the banking system as whole has the funds it needs to provide lending
• Defining eligibility for the scheme
• Defining a clear guaranteed liability