View more on these topics

BoE governor warns banks face radical change

Banks are “extremely likely” to face radical change and far tougher rules to stave off any future crises, the Bank of England governor has warned.

Mervyn King warned of the need to examine banking regulation in a speech to the Bank of Israel yesterday.

He says: “The recent challenges presented by the latest episode of financial turmoil suggest that much hard thought will need to be given to the structure and nature of banking regulation in the future.”

King adds: “In the longer-term, it seems extremely likely that banks and other ‘near’ banks, especially those that have been regarded as similar to banks in terms of their eligibility for financial assistance, will be called upon to hold more capital and a greater quantity of liquid assets than hitherto.

“It is too early to foresee clearly where the long-term direction will go.”

King claims a willingness to contemplate radical change will be necessary.

Turning to the domestic banking sector, he says the Monetary Policy Committee must not allow economic growth to slow so slowly that it pushes inflation below the 2% target.


Running sore

Disaster also struck eConveyancer’s plucky Vanessa Blount last week.

House prices fall for the sixth month in a row, says Hometrack

House prices have fallen for the sixth consecutive month, says property research firm Hometrack.The report says average prices slipped 0.2% in March with the annual rate of growth falling to +0.4%, the lowest level for 2 years and suggests that pricing will continue on a downward trend in the coming months. The survey did however […]

Salt withdraws all residential products

Salt has withdrawn all residential products as a result of unprecedented business volumes over the last 24 hours.A statement from Salt, a subsidiary of Derbyshire, says: “Current market conditions have resulted in a number of lenders withdrawing products. This has resulted in an increased appetite for our products and a corresponding record number of applications.“We […]

Great and good to gather at Summit

There are only eight weeks to go until >i>Mortgage Strategy’s Mortgage Summit 2008. With almost 100 top delegates in attendance, the Summit is set to be one of the most important events in this year’s industry calendar.

Top seaside property hotspots revealed

Like to let beside the seaside? The latest research from LendInvest looks specifically at coastal towns to find which areas offer the top average rental yields to landlords. Where are the top seaside postcodes for landlords? The interactive map below looks at the highest rental yields along the UK coast. According to the data, Hull, […]


News and expert analysis straight to your inbox

Sign up