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Written question asked by Dai Davies (Independent (affiliation)) on Monday, 25 January 2010, in the House of Commons. It was due for an answer on Wednesday, 27 January 2010. It was answered by Sarah McCarthy-Fry (Labour) on Tuesday, 2 February 2010 on behalf of the Treasury.

Banks: Regulation

Question
To ask the Chancellor of the Exchequer if he will (a) take steps to establish a ring-fenced fund in each bank in receipt of public funds to provide financial support to the manufacturing sector and (b) commission research on the implications for levels of greenhouse gas emissions of foreign energy projects involving fossil fuels which have received financing from the Royal Bank of Scotland.
Answer

Government's interests in financial institutions are managed at arm's length by UK Financial Investments Limited (UKFI). UKFI's Framework Agreement with HMT requires it to manage the investments on a commercial basis and not to intervene in day-to-day management decisions of the investee companies.In acting as an engaged institutional shareholder, UKFI will follow in full the Institutional Shareholders' Committee's Statement of Principles and take on board industry-wide recommendations or guidance contained in the Walker Review or elsewhere. If it considers that a particular bank's corporate social responsibility policies, including its environmental policies, are likely to have a negative effect on the value of the bank and its shares, we would expect UKFI to intervene, in order to protect the value of its holding.As part of the lending agreements linked to their participation in the Asset Protection Scheme, RBS announced on the 14 January that they would provide a manufacturing fund of £1 billion to support the manufacturing sector. This fund will provide loans between £250,000 and £25 million to any firm in the manufacturing sector.

Secondary information

Type
Written question
Reference
505 c212-3W; 314040
Session
2009-10
Subjects
Banks Regulation
Link
View this Written question on www.publications.parliament.uk