20
Jan
CML welcomes banking plans
New government plans to bolster the banking industry and increase
the levels of lending to consumers have been welcomed by the
Council of Mortgage Lenders (CML).
Moves such as the provision of guarantees for asset backed
securities have been hailed as the sort of measures likely to
increase investor confidence and thus raise the amount of liquidity
available.
The CML said such policies are ones it has been advocating for the
past year.
Commenting on the Treasury announcement, CML director general
Michael Coogan remarked: "At long last, the government has
announced a comprehensive and co-ordinated package of measures
sufficiently large in scale to have an impact on improving the flow
of new lending."
The new measures were also praised by New Star Asset Management
economist Simon Ward, who said they could make an "immediate
impact" on the flow of credit.
Elements of the announcement that may have a direct impact on the
level of mortgage lending include the change of policy at Northern
Rock, which will no longer be looking to run down its mortgage
book.
