Virtually all the country's savings are channeled through state-controlled banks that lend on the basis of political connections, not economic merit.

The central government recently ordered state-controlled banks to tighten lending to huge shopping mall projects.

By the end of 2009, the state-controlled bank had increased its liquidity stocks to 145 billion, from 90 billion pounds a year earlier.

The overnight interbank rate, guided by state-controlled banks, remained at 125-500 percent.

Freeze all bonuses in the state-controlled banks, until further notice.

Rushing to the rescue, the Government said it would increase the capital of the state-controlled bank by $8 billion.

In 2005, companies in which the state had a shareholding were pressured into moving their accounts to state-controlled banks.

The state-controlled bank said it had to set aside 17 billion francs for bad loans.

The Government immediately announced a rescue plan to increase the capital of the state-controlled bank by $8 billion.

Governor Romer wants to sell the assets, mainly loans, of the seven state-controlled banks by spring.