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.”
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