The multibillion-pound relief package announced by the UK Treasury and the Bank of England will help offset the risk to banks from an economic downturn caused by the coronavirus, but the effects could be limited, depending on the duration of the outbreak, according to Moody’s.

The measures to aid UK businesses, outlined on 18 March, include £330bn of loan guarantees to help companies access bank lending, and £20bn of tax relief and grants to smaller businesses to help them meet rent and labour fixed costs.