'Don't Force Banks to Hoard Money'

Western MailJune 30, 2011

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Summary


FORCING banks to squirrel away more of their money could have "profoundly negative consequences" for the UK's economy, the chairman of the British Bankers' Association told its annual conference yesterday.

Holding on to more capital is "undeniably important for making banks safer", said Marcus Agius, who is also chairman of Barclays, but carried to extremes it could stop banks lending when more loans are needed to stimulate economic recovery.

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'Don't Force Banks to Hoard Money'

Banks may also be forced to charge more for their services as they try to build up their reserve...

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