BOE Miles: Better On Strict Side In Macroprudential Tools
LONDON -(Dow Jones)- Bank of England Monetary Policy Committee member David Miles said Thursday that the experience of the financial crisis suggests that it is better to err on the strict side when implementing macroprudential regulation.
In a speech at the London School of Economics, Miles also said he believed that there is no obvious overall loss from house price declines, which create both winners and losers.
He also said it would be sensible to consider whether commission paid to financial intermediaries on mortgage deals is appropriate, and if it should be banned for the same reason that commission on savings products already has been.
"Given what we have been through, I think it makes sense to take more type 1 risk in thinking about regulation; that is, the risk of being too tough on some products and institutions when we need not have been," Miles said.
-By Natasha Brereton, Dow Jones Newswires; +44-20-7842-9254; natasha.brereton@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=8nLUSqR%2B15oQ%2FMg2D03oHg%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
July 02, 2009 11:12 ET (15:12 GMT)
Copyright 2009 Dow Jones & Company, Inc.
LONDON -(Dow Jones)- Bank of England Monetary Policy Committee member David Miles said Thursday that the experience of the financial crisis suggests that it is better to err on the strict side when implementing macroprudential regulation.
In a speech at the London School of Economics, Miles also said he believed that there is no obvious overall loss from house price declines, which create both winners and losers.
He also said it would be sensible to consider whether commission paid to financial intermediaries on mortgage deals is appropriate, and if it should be banned for the same reason that commission on savings products already has been.
"Given what we have been through, I think it makes sense to take more type 1 risk in thinking about regulation; that is, the risk of being too tough on some products and institutions when we need not have been," Miles said.
-By Natasha Brereton, Dow Jones Newswires; +44-20-7842-9254; natasha.brereton@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=8nLUSqR%2B15oQ%2FMg2D03oHg%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
July 02, 2009 11:12 ET (15:12 GMT)
Copyright 2009 Dow Jones & Company, Inc.
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