Business

Carney says the Bank of England is 'open for business'

Mark Carney Image copyright Getty Images
Image caption Mark Carney took charge at the Bank of England in July

The Bank of England intends to boost the availability of finance for banks, a move which could help them lend to consumers.

Describing the bank as "open for business", he said it would offer money for longer periods and widen the range of assets accepted as collateral.

He justified the move by saying that banks were healthier and had to meet tougher standards.

He also said there were reasons to believe the recovery was sustainable.

"One of the reasons to think there could be some sustainability, some traction in the recovery is that the core of the financial system has gotten a lot better," he said.

"I won't say it's fully healed, but it's gotten a lot better and the rebuilding of [bank] capital is a big element of that."

'Loathing'

He accepted that the reputation of the banking system had been damaged over the last few years.

He said that when he visited the UK as governor of the Bank of Canada during the crisis, he was struck how different the attitude was towards the banking sector.

He said that "loathing" of the banking sector had replaced confidence.

Mr Carney was speaking at a gathering marking the 125th anniversary of the Financial Times newspaper.

He said he hoped that banks would take advantage of the new opportunities to borrow from the Bank of England, as those facilities were little used at the moment.

The idea is to smooth bank finances and avoid a credit crunch, in which banks are unwilling to loan money to consumers or business.

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