Bank of England governor Mark Carney speaks during a news conference at the Bank of England in London, Tuesday, July 5, 2016. (Dylan Martinez/ Pool via AP)
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
The Bank of England took steps to ensure British banks keep lending and insurers do not dump corporate bonds as it said the economic risks it warned of before the vote to leave the European Union had started to materialize.The BoE, which is trying to offset the hit to the economy from the June 23 referendum result, said it would lower the amount of capital banks are required to hold in reserve, freeing up an extra 150 billion pounds ($196 billion) for lending.Governor Mark Carney said the Bank had warned in March that risks around the referendum posed the most significant near-term domestic risks to financial stability.The BoE's announcement on bank capital followed an unusually explicit comment by Carney last week that he believed the BoE would ease monetary policy soon too.Now, by putting the so-called countercyclical capital buffer back to zero until at least June 2017, banks' capital requirements will be eased by 5.7 billion pounds, potentially freeing up an extra 150 billion pounds for lending.
FOLLOW THIS ARTICLE