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LTV cap is an option says MPC member

A member of the Monetary Policy Committee says a cap on LTVs is one way of preventing vulnerabilities in capital markets.

Speaking to the Federal Reserve Bank of Kansas City annual Conference, Charlie Bean delivered a speech on ‘Monetary Policy after the Fall’.

He says : “Varying margin requirements might be a more appropriate instrument for dealing with vulnerabilities building up in the capital markets more generally. Finally, there is the option of introducing direct constraints on the terms or availability of credit, for instance imposing maximum LTV ratios in the mortgage market.

“The best approach seems likely to involve a portfolio of instruments. And while experience of the use of these tools might be limited, it is not entirely a tabula rasa. In particular, a number of developing and emerging economies have experience in applying some of these instruments, while there are also lessons to be drawn from the past experience of some advanced economies too.”


First Direct lands crown in poll for client satisfaction

First Direct has been rated the best lender for mortgage customers in a poll by Which? Money. The direct-only brand, part of HSBC, was far ahead of other banks, with an 87% approval rating for its mortgage servicing, com-pared with the average 60%. Which? members filled out a cus-tomer satisfaction survey with financial providers on […]

Existing loan books to reopen

Consider the divide between current lending volumes and the amount of existing loans and it’s apparent that those firms who get their legacy strategy right can expect returns, says Julian Wells, director of marketing, HML


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