Carney gets power to ban risky mortgages

By Staff | June 12, 2014 | Last updated on June 12, 2014
1 min read

The Bank of England’s Financial Policy Committee (FPC) will soon have the power to force banks to adopt lending practices aimed at preventing a housing bubble, reports the BBC.

And other U.K. news outlets report Bank of England governor Mark Carney is advising British home buyers to prepare for higher borrowing rates.

Read: CMHC guarantee puts taxpayers at risk, says OECD

Currently, the FPC makes recommendations to regulators, which have the authority to require banks to curb risky home loans. But these regulators, which include the Financial Conduct Authority, can reject FPC’s recommendations.

The policy shift will mean the “FPC is unambiguously the boss of the regulators, by giving it the power to order these curbs on lending, rather than just propose such curbs,” says the report.

Read more here.

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The staff of have been covering news for financial advisors since 1998.