Spanish banking group Santander has backed the UK government’s banking bailout by injecting cash into the British high street.
The firm revealed yesterday that it will raise 1 billion in capital to boost the position of both Abbey and Alliance & Leicester.
Santander says the investment will give the chain banks a Tier 1 capital ratio of 8%. This is in line with the UK Treasury’s demands for restoring confidence in the banking sector by ensuring lenders are financially viable.
The required Tier 1 capital ratio was secured for Royal Bank of Scotland, Lloyds TSBO and HBOS following a 37 billion capital investment from the government yesterday.
HSBC, Standard Chartered and Barclays have also said they will raise capital and secure a Tier 1 ratio with private investment.
Santander has also announced that shares acquired in the takeover of Alliance & Leicester have been successfully listed on the Madrid, Barcelona, Bilbao and Valencia stock exchanges. Trading on the Mercado Continuo will start on 14 October.
D.C.