Arab Today, arab today senior banker warns uk reforms may fall short
Last Updated : GMT 23:12:04
Arab Today, arab today
Arab Today, arab today

Senior banker warns UK reforms may fall short

Arab Today, arab today

Arab Today, arab today Senior banker warns UK reforms may fall short

London - Arabstoday

Standard Chartered has warned that the Chancellor\'s array of banking reforms will not do their job unless the new Financial Policy Committee is prepared to intervene directly to stop markets overheating. Richard Meddings, the bank\'s highly respected finance director, said Asian regulators had protected their economies as Britain and the US had let markets boom before the crisis. Mr Meddings said: \"Western regulators should learn lessons from Asia. Where are the [mortgage] loan-to-value restrictions and liquidity reserves?\" Mr Meddings said Britain was instead relying too much on strict regulation of capital and liquidity, which could cause credit to dry up just as the economy needs the banks to lend. He said: \"We would question whether regulators have sufficiently worked out the aggregate consequences of the breadth and depth of regulatory change in such a short period of time on banks\' capacity to provide credit to the economy. \"To use an aeroplane analogy, if a bank is a plane you can make the plane safer but if the air traffic control is haywire then all the banks in the world come crashing down.\" Standard Chartered racked up record profits during the financial crisis and kept lending to businesses in Asia, Africa and the Middle East as credit dried up in the UK. Mr Meddings said the bank benefited from regulation in its markets. The FPC will be able to use macro-prudential \"tools\" such as imposing loan-to-value limits for house purchases to protect financial stability. Mr Meddings said: \"We would encourage them to do so because it is a powerful mechanism to protect the resilience of growing economies and to limit the impact of bubbles.\" He added: \"It\'s politically difficult to say you can only have 70 per cent loan to value but that has made Asia\'s performance much more resilient. \"People talk about asset bubbles in Asia and say prices are going up, but when you have got 60 or 70 per cent LTV then you have 30 or 40 per cent of equity in the property. \"In the UK they allowed loans to value of 125 per cent and it was worse in the US. When house prices are soft and falling you don\'t want to be lending at 100 per cent.\" He also said the FPC should increase the liquidity reserves banks have to hold with the Bank of England when credit is too lax because that would reduce money for lending and make the central bank more liquid. Such actions are also strong signals to the banks and consumers that things are getting out of hand, he said. \"The central bank says, \'We are taking away the punch bowl.\' The only thing we have here is raising interest rates and we can\'t do that now because so many people are worried about interest rates because they have over-borrowed.\"

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today senior banker warns uk reforms may fall short Arab Today, arab today senior banker warns uk reforms may fall short

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today senior banker warns uk reforms may fall short Arab Today, arab today senior banker warns uk reforms may fall short

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today

GMT 09:49 2017 Tuesday ,02 May

Girl barred from Malaysia chess competition

GMT 17:59 2017 Monday ,12 June

Designer Rania Adel reveals her new collection

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse

GMT 16:25 2017 Sunday ,04 June

“Suhoor” is basic meal for fasting

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 11:09 2017 Sunday ,25 June

HUAWEI P10 the ‘guru’ of portrait shots
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday