Alistair Darling has defended the secrecy surrounding the £62bn of loans to prop up RBS and HBOS as a necessary measure to prevent a Northern Rock-style bank run.
The Chancellor's comments came a day after the Bank of England revealed the extent of the lifeline thrown to the banks at the height of the financial crisis.
The loan facilities - £36.6bn for RBS and £25.4bn for HBOS - were granted in October 2008.
The four-month loans were kept secret as the Bank of England feared disclosing the need for emergency funds would cause a Northern Rock-style run on the banks.
Mr Darling said the central bank fulfilled its role as a 'lender of last resort' in providing the funds and had done so with the Government's blessing.
The Chancellor said protecting retail depositors and maintaining financial stability had been paramount in its decision making.
He told the Commons: "Disclosure of individual operations could lead to a loss of confidence and exacerbate any short-term liquidity problems. This is exactly the problem we saw with Northern Rock in September 2007."
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