Michael Coogan, director-general of the CML, emphasised the point this morning in a Debt and Personal Finance All Party Parliamentary Group meeting.
He says: “If it is used widely, as I expect it to be, and extends to over £50bn in asset swaps by banks and building societies, we think that some of that money will be recycled responsibly into the mortgage market.
“However, it was not the bank’s main intention or aim. This possible outcome of recycled funds is also uncertain in terms of scale and timing.”
These comments echo statements from Mervyn King, governor of the BoE, which were made to the Treasury Committee yesterday.