LONDON (Reuters) - The government said on Wednesday it was "bringing forward specific and comprehensive measures to ensure the stability of the financial system and to protect ordinary savers, depositors, businesses and borrowers".

At least 200 billion pounds will be made available to banks under a special liquidity scheme, and banks will increase their total Tier 1 capital by 25 billion pounds.

Also, the government will provide an incremental minimum of 25 billion pounds of further support for all eligible institutions, in the form of preference shares, PIBS or as assistance to an ordinary equity fund-raising.

EMANUELE RAVANO, MANAGING DIRECTOR, PIMCO EUROPE

"The fact they have guaranteed future senior issuance for up to 250 billion pounds is a major, major aspect of this. Because not only are they putting in capital but they are also guaranteeing senior reissuance so this means they are sorting out all the refinancing problems for 2009.

"This package is operating at two levels -- immediate capital strengthing (and it) takes out all the future issues in terms of future raising and allow banks to operate with some degree of higher certainty which allows them to operate as the financial entities they are supposed to be.

"Moral hazard is a concept that nobody can afford when markets are going down at this rate."

ROBERT TALBUT, CIO, ROYAL LONDON ASSET MANAGEMENT

"This is a useful step but I am disappointed that there isn't more detail in there about the precise amounts that are going to be injected into individual banks.  Continued...