LONDON (MNI) – Bank of England Governor Mervyn King has said
sentiment in financial markets has improved a little but warned that the
underlying picture for global growth remains weak.
Speaking at a press conference following the publication of the
Financial Stability Report, King also said that banks should be able to
raise additional capital without derailing the economic recovery by
reducing lending.
The BOE’s Financial Policy Committee said that banks’ capital
raising had slowed and they may well be overstating their capital
strength.
“This problem is manageable, perfectly manageable but it requires
some action now. Just deal with it now, we can do it. There’s no reason
why the actions that need to be taken can’t be done very quickly without
any damage or difficulty to the UK banking system,” King said.
-London newsroom: 4420 7862 7491 e-mail: wwilkes@marketnews.com
drobinson@marketnews.com
[TOPICS: M$B$$$,M$$BE$]
