The government’s £500bn bailout of the UK’s banks will not have much impact on jobs in the banking sector, a financial recruiter has claimed.

Vivienne Farina, managing director at financial recruiter City Professionals, told Recruiter that yesterday’s rescue package of the UK banking system would get the banks lending to one another but the damage had already been done.

Farina said: “ I don’t think it’s going to have much impact. If we go into recession, jobs are lost and in the City it has been deathly quiet and has been for the last three weeks. There has not been much activity except in compliance and even that has been getting slower.

“It is hard to tell how it is going to pan out. The job market will contract. It is going to be hard time for all of us.

“Banks have closed down. It will have some effect in the banks in that they will start dealing with one another but we have no evidence of that as of yet.”