Banks of UK possibly received the best news after a long hiatus, when they learned that the government of UK would be supplying in an extra dose of capital worth 50 billion pounds into the banking system in a bid to help them survive from the aftershocks of the current financial nemesis.

The government of UK, which in past has received a lot of flak from the critics and opposition parties received more then a overwhelming response from the banks located across the world, which augers well. As this could possibly led to the restoration of confidence of normal citizens into banking sector. Also, this step could also possibly instill a fresh breath of air into the dying loan market of UK, as after this availability of liquidity is expected to be no longer a problem.

In a bid to shoot up the entire banking system, government will be injecting the capital into the system by the means of the preference shares and other financial tools. Ironically, the past few months have not at all been fruitful for the banking system of UK which has taken a merciless beating at the hands of the financial turmoil.

What is more interesting is that this move has definitely won the government applause from the whole banking sector, at least for the time being. What this move has done for the government, is that it has sent out strong signals to the critics of government who earlier claimed that it has proved to be pretty ineffective and exemplified lot of immaturity when it came to handling the issue of liquidity crisis.