Monday, Dec 22, 2014Monday, Dec 22, 2014

News

 

Tougher rules a must for more resilient banking system: BoE policymaker

Published on Jun 13, 2013 8:38 PM
 
A pedestrian crosses the road outside the Bank of England in London on Dec 8, 2011. A Bank of England policymaker defended new rules to make banks more resilient to financial crises, saying on Thursday, June 13, 2013, they would help shore up economic growth although restoring confidence in the system would take time. -- FILE PHOTO: BLOOMBERG

HELSINKI (REUTERS) - A Bank of England policymaker defended new rules to make banks more resilient to financial crises, saying on Thursday they would help shore up economic growth although restoring confidence in the system would take time.

"More resilient banking systems will enhance the capacity of monetary policy to underpin growth in an economic downturn," Bank of England Deputy Governor Paul Tucker said in a speech to be delivered in Finland.

"It will be a while before confidence in the system is restored, and never again should confidence be so blind."

British banks have complained that new rules for higher capital levels and other post-crisis reforms may crimp their ability to lend, hurting economic growth.

 
If you are not a subscriber, you can get instant, unlimited access here