The Honda Financial Service Group is set to begin work on a project to help UK banks recover from a banking crisis that has hit the car industry.
The company’s chairman, Peter Mair, said in a statement that the Honda Financial Group was looking to help the British banking sector recover from “significant and sustained financial stress”.
It is the first time that Honda has launched a bank bailout programme.
Mr Mair said the group had begun work in January and is set for completion by the end of this year.
The group, which is part of the Honda Group of Companies, is one of a number of firms set up to assist British banks and financial institutions in their recovery from the financial crisis that began in late 2007.
It will focus on helping UK banks achieve a level of capital adequacy that will allow them to continue to operate.
Honda Financial Services said it was aiming to deliver a “clear and achievable framework” by the start of the new financial year.
Its work will involve:The group said it would be able to provide a range of services including direct loans to help with capital requirements, direct lending to UK firms and direct lending for non-UK firms.
The firm is planning to take advantage of an additional £200m of additional funding from the European Investment Bank (EIB) to help it achieve this aim.
Hondas chief executive, Michael O’Connor, said the bank would also look at ways of offering help to its competitors in the UK.
Mr O’Connors statement added: “Honda will be making an initial commitment to support its UK competitors and is determined to achieve a positive outcome for all of our customers.”
We are confident that we can continue to be a trusted partner to our UK competitors.