Highlights of the government's recapitalisation of banks

LONDON (Reuters) - Three major British banks could take 37 billion pounds in government money to boost their capital, the government said on Monday.

Below are highlights of the deal:

MEASURES

- The government is making capital investments in RBS, and upon successful merger, HBOS and Lloyds TSB, totalling 37 billion pounds.

- Following the completion of these capital investments, each of the institutions will have a Tier 1 capital ratio in excess of 9 percent, well above international minimum standards and at a level that should put them on a strong footing for the future.

BANK COMMITMENTS IN RETURN FOR CAPITAL

- Maintaining, over the next three years, the availability and active marketing of competitively priced lending to homeowners and to small businesses at 2007 levels

- Support for schemes to help people struggling with mortgage payments to stay in their homes, and to support the expansion of financial capability initiatives

- Conditions on the remuneration of senior executives, both for 2008 (when the government expects no cash bonuses to be paid to board members) and in the future when incentive schemes will be linked to long-term value creation, take account of risk and avoid rewarding failure.  Continued...