British Chancellor commits to 'stable banking system'

British Chancellor Alistair Darling today pledged the UK government would “do everything we can” to return financial markets to normal in the wake of the Northern Rock crisis.

He said he was determined Britain would maintain a stable banking system, as he prepared to chair a special meeting of representatives of the Bank of England and the Financial Services Authority to assess the latest situation surrounding the trouble-hit bank.

Mr Darling told reporters: “We know that the problems that Northern Rock have been facing have their roots in the mortgage market. This is an international problem which is why we are taking action internationally.”

But Mr Darling, who yesterday announced the Government would guarantee the security of savers’ deposits in Northern Rock, went on: “We will continue to do everything we can to ensure that the market returns to normal and I’m determined we maintain a stable banking system.”