- Must avoid damage to wider economy from banks attempts to boost their balance sheets
- Resolving broader financial system problems are beyond the capability of the UK on its own
- FPC ‘s recommendation for banks to boost balance sheets doesn’t necessarily mean they are undercapitalised, more to improve resilience
- EU crisis is one of solvency not liquidity, UK is making contigency plans for EU default as know one knows what could happen in the event of a break up of the Euro
- EU transfers needed to avoid an explosion to even greater debt levels
- As chairman of group of CB’s, I initiated conversations leading to the Wednesday CB swap action (Good on you Merv)- proves that Central banks can work together, but the measures taken are for temporary relief and can’t be a solution to underlying problems
- Credit crunch could spread to Britain if EU problems don’t subside
- Can’t say just how much extra capital is needed for UK banks to retain confidence
- Bank’s should take opportunities that don’t impact on lending to boost capital if at all possible
- Higher bank capital ensures UK banks retain the ability to lend should the crisis impact further.
- Low Gilt yields are not down to BOE asset purchases alone
- Britain isn’t facing solvency problems, unlike the Eurozone
- Vickers commiison UK bank reform report should be implemented as quickly as possible
- UK’s biggest regret of the last 4 years is that a framework resolution wasn’t in place for Northern Rock
That’s it my fingers are worn out from all this typing….
