New US administration in credit boost initiative

An increase in bank lending will be a key element of the economic policies under the incoming US administration led by Barack Obama, members of his team have said over the weekend.

The president-elect's choice as the new head of the National Economic Council Larry Summers stated that the emphasis of the recapitalisation money will be to ensure all banks who are able to do so lend.

He told the CBC Face the Nation programme that such institutions will be "expected to lend above their baseline levels".

A similar point was made by one of Mr Obama's advisors, David Axelrod, when he appeared on ABC's This Week programme.

Such moves could make it easier for those looking for finance to invest in US property to do so.

In a speech in Washington on Sunday, Mr Obama said he was confident the country would succeed in overcoming its economic problems.

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