20 Jan

CML welcomes banking plans

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.

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