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Bank of England 'open for business', says Carney

25 Oct 2013

The Bank of England is to increase lending to smaller banks in a bid to help businesses and consumers.

The Governor of the Bank of England, Mark Carney, said the Bank will offer money for longer periods of time, widen the definition of acceptable collateral assets and offer liquidity at lower prices than before.

Speaking at the Financial Times newspaper’s 125th anniversary, Mr Carney said he recognised that the reputation of the UK banking system had been damaged over the last few years but believed that now ‘there could be some sustainability, some traction in the recovery’.

He described the bank as being ‘open for business’ and justified the move by saying that ‘the core of the financial system has gotten a lot better’.

A document released yesterday by the Bank of England provided a summary of changes to its Sterling Monetary Framework (SMF) and said that the shift in circumstances has allowed ‘a re-positioning of the Bank’s lending facilities’.

Mr Carney hopes that the banks will take advantage of these new opportunities to borrow from the Bank of England and that they will be more willing to lend to both consumers and businesses.