Financial Times FT.com

Banking guarantees: Short of a panacea

By Chris Hughes

Published: October 28 2008 13:27 | Last updated: October 28 2008 13:27

Government intervention to revive the banking system may have been hailed as a turning point in the credit crisis, but it is doubtful whether corporate borrowers will be among the main beneficiaries.

Most western countries have agreed to inject taxpayer-funded equity into their domestic banking systems. The support varies in form, cost and size, and with respect to the softer conditions attached, and the implications for corporate customers will vary for each jurisdiction.

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