The Governor touches on the increased role of the banks infinancing industry, the risks to which this exposes banks in recessionary conditions, and the role of the Bank of England in cases where many banks are involved:
- The Bank is not involved as a lender.
- Each bank must make its own decisions on questions of liability, but there are occasions when joint discussions become necessary.
- In such cases the Bank of England is able to play a modest part as a neutral chairman in helping to find a mutually acceptable solution.
The banks role in financing industry - Governors speech at the Institute of Bankers in Scotland