BERLIN (MNI) – Bank of England Monetary Policy Council member Adam
Posen said Thursday the structure of the British banking system is
hampering the economic recovery of the country.
“In the UK we have too few banks, they’re too large and this is
interfering with the UK’s recovery as well as being a destabilising
factor,” Posen said at a conference on financial market regulation here.
An overly concentrated banking system is one that is unstable,
Posen reckoned: “It is good to have diversity.”
Posen also called for stiffer banking supervision rules and less
discretion for supervisors.
Posen took care to note that his remarks were not made in the name
of the Bank of England but that he spoke as senior fellow of the
Peterson Institute for International Economics.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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