LONDON (Reuters) - Britain's policy makers may have to do more loans flows around the economy, banking supervision and monetary policy combination of a creative way to resist the threat of deflation, banking regulators in the UK, Adair special is satisfied, said last Friday.
Turner, chairman of the Financial Services Authority, was brought down the banks of a potential successor to Bank of England governor Mervyn King, and he said his role as a member of the Bank of England monetary policy committee, a new regulatory central banks in charge of a systemic threat to financial stability.
The new committee has been trying to urge the banking regulators the Financial Services Authority to relax the rules on how much ready cash banks must hold in a new banking facilities, easier to light, in case of emergency cash to stimulate lending bank into illiquid assets.
Some members of the FPC is even, this shows that the FSA fully suspend the liquidity guidelines, but they avoided much constraints of working capital loans and concerns, which may encourage banks to return to unstable sources of funding have questions.
These steps help to improve the effectiveness of monetary policy of the Bank's quantitative easing asset purchase, Turner said that in the event in Manchester last Friday night, according to the release of his speech in advance.
"Faced with the risk of persistent deflation, we need to think about the combination of creative and innovative policy measures, which will not only economic recovery assistance, and help build a more stable future systems," Turner said.
Measures announced in the past three weeks, reflecting the integrated approach required, but it may further creative mix of policies will need as our observation of these measures and to understand the challenges of the deleveraging process, "he said.
Governments and central banks announced a plan to reduce the cost of capital of the bank in exchange for more loans to businesses. In addition, banks provide cheap six months of additional funds in a wide range of collateral.
"We do not know the precise supply and demand factors in explaining the lack of balance between credit growth, but the supply is certainly part of the story, it is reasonable to use a comprehensive policy to alleviate any supply-side constraints," Turner said .
"But over time, as we observe the use of subsidized loan scheme, we will learn more about the supply / demand balance, the current measures whether the package is enough," he said.
Relaxation of the rules of the bank's capital adequacy ratio, however, is not an option, Turner said, many banks have to pay money, a period of tension because of market concern is their capital is insufficient to absorb losses that may occur.
"Relaxation of capital requirements for banks to stimulate the loan is likely to be counter-productive - it may increase the cost of capital, borrowing costs," he said.



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