Page last updated at 13:41 GMT, Monday, 14 March 2011

Public Accounts Committee

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The chief executive of the Royal Bank of Scotland (RBS) Stephen Hester has told MPs he disagreed with the Bank of England's assessment of the amount of taxpayer support for UK banks in 2009.

Giving evidence to the Public Accounts Committee on 16 March 2011 he said he did not recognise the BoE's claim that support for the industry had totalled £100bn, and said the real figure was "impossible to quantify".

MPs were holding an evidence session on the asset protection scheme (APS), set up by the previous government in 2009 to raise confidence in the banking system following the financial crisis of 2007-8.

It initially backed assets in RBS and the Lloyds Banking Group in return for an agreement on lending levels.

A December 2010 report by the National Audit Office (NAO) said the plan had a "beneficial impact" on the markets.

However it said the scheme did not fully succeed in its aim of boosting bank lending.

The NAO said the banks had met the mortgage targets but not the one for small business lending.

MPs also heard from Mr Hester's colleague Nathan Bostock, and Eric Daniels and Tim Tookey from the Lloyds Banking Group.

Public accounts committee membership


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