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As part of those measures, the government has announced today that it is going to buy newly issued shares in the Royal Bank of Scotland (RBS) and also HBOS and Lloyds TSB, when their merger is complete, to provide these banks with more funds to run their businesses.

Customers of RBS, HBOS and Lloyds TSB will not be affected by these announcements today. You can continue to use all of your banking facilities, to withdraw cash and access your accounts. Banking facilities will be open for business as usual, with branches, internet and call centres operating as normal.

Mortgage and loan customers’ terms and conditions remain the same and you should continue to make repayments as usual.

Key questions and answers

What does this actually mean for customers?

Customers will not be affected at all. You should continue to use your existing banking facilities and can continue to withdraw cash and access your accounts. Branches, internet and call centres will all be operating as normal today.

These steps have been taken to help banks in these difficult times, to protect customers’ money and to put banks on a stronger footing to help them lend to people, families and businesses.

• Savers - accounts can be used as usual
• Mortgage holders and customers with loans - monthly payments should be made in the usual way.

Is my money safe?

The government has taken this action to protect savers and ensure the stability of our banking system during the current financial conditions.

Why has this happened?

In the current financial climate, the government has launched a package of measures to protect savers and support banks to ensure that they can continue to remain strong enough to withstand the global financial crisis. The recapitalisation plan is one part of this and will involve the government taking part ownership in RBS, HBOS and Lloyds TSB through buying shares. The government has also offered to support banks which want to raise new capital by offering shares to investors.

The scheme puts banks on a stronger footing and will help them lend to people, families and businesses.

Does this mean these banks are being nationalised, like Northern Rock and Bradford and Bingley?

No, the government is buying some shares in these banks, so it will own a shareholding in the bank along with existing shareholders.

I have shares in RBS, HBOS or Lloyds TSB banks. Will they lose value or be diluted by the government buying shares?

You will own the same number of shares, but in a bank with a larger total number of shares.

Further information

HM Treasury has also issued more technical details of the package.

• The banking support measures in detail