Zurich  - Shares in the Swiss bank UBS continued their fall on Monday, dropping 9.09 per cent to 10 francs (8.59 dollars), setting a new low for the stock on the Zurich exchange.

On Friday, the stock lost 14 per cent, closing at 11 francs.

The decline in value was seen as a reaction to the investigation in the United States into allegations that UBS employees helped clients commit tax fraud and concerns about the fate of the Alpine country's secret banking laws.

Washington - President Barack Obama's economic team sought to ease fears that US banks are on the verge of either collapse or nationalization amid reports Monday that the government is considering a large ownership stake in Citigroup Inc.

The Treasury, Federal Reserve and other government finance agencies issued a rare joint statement assuring investors that the administration "stands firmly behind the banking system during this period of financial strain."

Vaduz - Lichtenstein's VP Bank Group said Monday it lost 80.3 million Swiss francs during 2008, after being forced to take writedowns due to the financial crisis.

The group said it would reduce operating expenses in 2009 by at least 10 per cent.

In a statement the bank said it had to write down 117 million francs in the income statement and 55.3 million of shareholders' equity.

The financial crisis pushed the bank to offer capital protection for clients invested in VP Bank's cash and money market funds, adding some 68.1 million francs to the 2009 financial statement.

London  - Britain's part-nationalised Royal Bank of Scotland (RBS) could make around 20,000 redundancies as it aims to focus on its core business, according to media reports on Sunday.

New chief executive Stephen Hester is set to announce a cull of around 10 per cent of the bank's global workforce, as he forces the troubled bank to focus on its core activities, several British newspapers reported at the weekend.

The bank could also sell off its divisions in Australia and Asia, as it unveils its annual results on Thursday.

Washington  - The Silver Falls Bank in the western US state of Oregon became the 14th US bank to be seized so far this year, part of an escalating pattern of bank failures amidst the worst financial turmoil in more than 70 years.

Oregon state regulators seized the bank, which had 116.3 million dollars in deposits, or liabilities, and 131.4 million dollars in assets, usually in the form of outstanding loans to businesses and consumers.

The Federal Deposit Insurance Corporation was named as the receiver. The FDIC said Friday that another local bank, Citizens Bank of Corvallis, Oregon, would take over the deposits and hang its shingle on the Silver Falls branches by Monday.

For all of 2008, the FDIC shut down 25 banks.

The competitors have yet again been surprised by the State Bank of India (SBI), which earlier created hype in the home loan market and this time it has slashed interest rates on loans for new cars. Furthermore, SBI, the country's biggest bank has also reduced its lending rate against warehouse receipts for farmers.