Bank of England Governor Mark Carney has shown admirable leadership over the past two weeks. In times of unprecedented political upheaval, his has been a voice of calm amid the chaos.
He has repeatedly said that the Bank will do ‘everything possible’ to support financial institutions’ ability to lend. This type of language can be very powerful, as we saw when ECB President Mario Draghi said his institution would do ‘whatever it takes’ to support the single currency at the height of the Eurozone crisis.
Mr Carney’s latest announcement that he would be suspending the requirement for banks to build additional capital buffers this year was a skilful move on two fronts. Not only did it free up more money for investment, it also sent the message that measures taken to strengthen banks since the financial crisis have worked.
Mark Carney has warned that the financial risks of Brexit “have begun to crystallise” and said the Bank of England will do everything possible to ensure banks were able to continue offering loans to companies and households.