The Credit Crunch and the UK Economy - speech by Sir John Gieve

In a speech at the Family Office Leadership Summit in London, John Gieve – Deputy Governor of the Bank of England – steps back from financial market developments in recent days and discusses how the credit crunch is affecting the wider UK economy.
Published on 22 September 2008

He first notes that like other central banks, the Bank of England has “…adapted (its) money market operations to provide the liquidity the banking system as a whole has required. First, we have allowed banks to increase their reserve balances at the Bank, increasing the size of our overall provision of central bank money; second, within that larger total, we have shifted the balance towards longer-term lending as the terms of market finance have shortened; third, we have widened the collateral we accept for longer-term repos. And in April, we introduced a special scheme to provide banks with up to three years’ finance for legacy assets which have become illiquid.”

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