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BoE's Carney on financial stability

Thursday, November 28, 2013 - 02:43

Nov. 28 - Bank of England Governor Mark Carney speaks on housing, scaling back on mortgage lending and other issueas at the presentation of the Financial Stability Report. Rough Cut (no reporter narration).

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In the six months since the June financial stability report an economic recovery has taken hold in the United Kingdom. Confidence is returned and credit conditions have used further. UK banks have bolstered their capital positions by more than twenty billion pounds to meet the shortfalls identified by the FPC and your way. And liquidity conditions remain robust. Despite the return to solid growth financial stability risks remain. Including those arising from high levels of indebtedness here and abroad. Sharp rises in global interest rates could test financial system resilience so particularly. If they are not associated. With strengthening incomes. The package of measures that I described today will contribute to a constructive evolution of the housing market. By reinforcing financial stability they further reinforce the MPC's ability. To provide exceptional monetary stimulus to the entire. UK economy for as long as it deems appropriate. And securing financial stability requires much more than a resilient housing market. And that's why the FT CS senate today is three others strategic priorities between fourteen. And those are. First helping. To set the medium term capital framework for banks. Including by conducting a review of the role of the leverage ratio within that framework. Second working day and too big to fail. And third identifying. And addressing risks and shadow banking -- supporting diverse and resilient sources of market based finance. All of these structural measures are essential to developing -- more diverse. And resilient financial system. Did it in a recovery with rising incomes. There can be further movement. With without prices that's consistent with those fundamentals. What we don't -- have is a is that housing market is driven by deterioration. In bank balance sheets of deterioration in underwriting standards and that's what that's what -- We did not see. An immediate threat. Coming from the housing market. But we are concerned about the perspective evolution of that market in the absence of some of these changes given. The access to credit him for households now and in particular for mortgages. He would no longer be appropriate or necessary to have our foot on the accelerator. It's better to shift in shift into neutral and that's why these changes Indianapolis for me.

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BoE's Carney on financial stability

Thursday, November 28, 2013 - 02:43