The UK government on Monday confirmed that it was nationalising Bradford & Bingley.

In a statement, the Treasury said it had taken the decision in order to maintain financial stability and protect depositors, while minimising the exposure to taxpayers. It said the Financial Services Authority, the regulator, had determind on Saturday that B&B no longer met its threshold conditions for operating as a deposit taker.

On Saturday, the government invited bids for B&B’s £21bn retail deposit base and branches as well as inviting offers for its head office and its mortgage loan book. Banco Santander on Sunday night agreed to buy the network of 197 branches and 140 agency outlets as well as the £21bn retail deposit book for about £600m.

In the past few days retail savers withdrew millions of pounds from the bank.