October 14, 2019 / 12:42 PM / a month ago

BoE's Cunliffe moots more bank capital firepower for downturns

LONDON, Oct 14 (Reuters) - The Bank of England may need to make the counter-cyclical capital buffer, designed to restrain bank lending in boom times and unleash it during downturns, more powerful if interest rates stay low for a long time, Deputy Governor Jon Cunliffe said.

“Releasing buffers can have a powerful effect in a downturn by reducing the pressure on banks to cut back on lending and so avoid a credit crunch amplifying the macro-economic shock,” Cunliffe said in a speech to the Society of Professional Economists in London on Monday.

“The question perhaps is whether that buffer needs to be made more powerful in a low for long world given the greater risk of severe downturns.” (Reporting by David Milliken Writing by Andy Bruce Editing by William Schomberg)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below