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LONDON - BRITAIN is considering another bail-out for the country's banking sector, reports said on Saturday, amid fears that October's multi-billion-dollar cash injection has failed to boost credit flows.
The BBC, citing sources at the Treasury department, said finance minister Alistair Darling is creating a new package of measures in the face of looming recession, with a fresh injection of cash a possibility.
No decisions have been made yet, the broadcaster said, but it reported the government was considering gathering up banks' so-called 'toxic assets' into a new entity, or exchanging them for government bonds.
Treasury officials have previously stated that they would monitor the effects of October's 37-billion-pound (S$93.6 billion) bail-out of three British banks, and take further action if necessary.
The Bank of England warned in its quarterly credit conditions survey Friday that despite government action, banks plan to further cut back on lending to individuals and businesses over the next three months. -- AFP
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