The U.S. Treasury Department’s bailout plan, the Troubled Asset Relief Program, is expected to go before the House of Representatives later on Friday, but analysts worry that even if it is passed the plan won’t be enough.

Earlier this week the U.S. Senate passed a revised version of the TARP and the plan is expected to win narrow approval from the House today, paving the way for it to be adopted.

Passing the plan should provide a lift to markets, says BCA Research. But it warns that it may not be sufficient to break the logjam in global credit markets: “Our fear is that policymakers, including many central banks, still do not fully grasp the challenges facing the financial system.”

“Governments must effectively guarantee the banking system on both the asset and liability side and provide more relief to homeowners. Co-ordinated rate cuts are also necessary to stem the economic damage already evident in the latest purchasing managers’ surveys in the U.S. and Europe,” it argues.

“In the end, policymakers will do what is needed; the unknown is whether even more market rioting is first needed,” it concludes.