The chairman of the Financial Services Authority (FSA) has called on banks to keep a check on the
commercial property sector.
In a speech in London, the FSA chairman Lord Adair Turner discussed a number of potential measures that could monitor the sector.
Lord Turner noted that measures needed to be introduced to prevent potentially unstable cycles of credit and asset prices.
Speaking at the CASS Business School in London, he said that to bring in a one-size-fits-all policy to curbing asset price bubbles in the
business property sector may be counterproductive because of the impact it could have on releasing credit to other areas of the market.
Earlier this month, the FSA's report into the UK's financial risks indicated that about £160 billion of commercial property-related debt would mature in the next five years.