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FSA chairman wants end of 100% mortgages
The Financial Services Authority (FSA) chairman has called for an end to 100% residential mortgages.
Under measures discussed by the FSA chairman those attempting to purchase a residential property would need to provide a deposit before being granted a mortgage.
Speaking at a lecture at the CASS Business School in London the chairman, Lord Adair Turner, said that such measures would be required to prevent potentially unstable cycles of credit and asset prices.
The lecture, entitled What do banks do, what should they do and what public policies are needed to ensure best results for the real economy?, saw the chairman consider the pros and cons of varying approaches to lending.
Lord Turner said: "There are no easy answers here, but some combination of new macro prudential tools is likely to be required. We need ways of taking away the punchbowl before the party gets out of hand."
The FSA was established by the government to regulate financial services in the UK.
Under measures discussed by the FSA chairman those attempting to purchase a residential property would need to provide a deposit before being granted a mortgage.
Speaking at a lecture at the CASS Business School in London the chairman, Lord Adair Turner, said that such measures would be required to prevent potentially unstable cycles of credit and asset prices.
The lecture, entitled What do banks do, what should they do and what public policies are needed to ensure best results for the real economy?, saw the chairman consider the pros and cons of varying approaches to lending.
Lord Turner said: "There are no easy answers here, but some combination of new macro prudential tools is likely to be required. We need ways of taking away the punchbowl before the party gets out of hand."
The FSA was established by the government to regulate financial services in the UK.
Thu, 18th Mar 2010