Q&A: Project Merlin bank deal

The government was keen to strike a deal before the banks start reporting their results for 2010

The chancellor has announced details of Project Merlin - an agreement between the government and the UK's four biggest banks.

HSBC, Barclays, Royal Bank of Scotland and Lloyds Banking Group have all signed up to the deal, which covers lending, bonuses and transparency.

What exactly have the banks agreed?

How much will they lend?

And what have they said about bonuses?

How transparent will banks' pay packages be?

What checks will there be on the banks to make sure they stick to their commitments?

Why was the government so keen to get this deal done?

What difference will it make?

What else is the government doing?