London  - The Bank of England said Monday that it would inject 50 billion pounds (100 billion dollars) into the banking sector to ease the mortgage squeeze in the wake of the global credit crunch.

The package, under which banks will be able to swap their riskier mortgage-backed assets for government bonds to shore up their finances, is seen as the most ambitious so far in the global banking sector.

The announcement followed reports that the Royal Bank of Scotland (RBS) is to seek some 10 billion pounds in a new rights issue to shareholders this week.

The bank, Britain's second-largest, is also expected to reveal further write-downs, probably in the region of 5 billion pounds.

The Bank of England's scheme aims to improve the liquidity position of the banking system and increase confidence in financial markets, a statement from the central bank said. (dpa)