BOE Says New Macro-Economic Regulatory Powers Will Prevent Future Crisis

Planned new powers to be devolved to the Bank of England will help avert any future financial or debt crisis according to Charles Bean, Deputy Governor of the Bank of England.

He said control of interest rates was not in itself enough to prevent the economic crisis or aid recovery. This Macro-Prudential Policy, details of which will be revealed in the Financial Services Regulation Bill later this year will include the right to force banks to build up additional reserves during prosperous periods, force high-risk lenders to mitigate exposures and impose more rigid mortgage criteria such as loan-to-value ratios.

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