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BBA welcomes BoE intervention

21 September 2007
The British Bankers' Association (BBA) has welcomed the Bank of England's (BoE's) decision to take action and ease conditions within the financial markets.

Recent financial market volatility prompted the Bank to intervene and offer to provide funds at a three-month maturity against a "wider range of collateral" than it would ordinarily do.

Angela Knight, chief executive of the association, said: "The BBA welcomes the more flexible approach to the provision of liquidity to the Sterling market announced today by the Bank of England."

The BoE's actions should help to improve the "very tight" conditions within the money market, she added, noting that both the European Central Bank and the US Federal Reserve had taken similar steps.

Michael Coogan, director general of the Council of Mortgage Lenders, also responded positively, stating that the move was "good news" for lenders and mortgage customers, some of whom may have been facing higher repayments.

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