9 July 2009
The Bank of England will be given new powers to control the amount of money lent out by banks and other financial institutions, reports the BBC.
A new committee will be made up of members of the Bank of England and the Financial Services Authority (FSA). The committee will aim to prevent a reoccurrence of the kind of `lending boom` seen between 2005 and 2007, which many have held partly responsible for the current economic situation.
The move could also help to avoid a repeat of the widespread debt problems currently affecting many people across the UK.
A debt expert for Think Money said: "The aim seems to be to limit lending to an acceptable level - higher than we`re currently seeing, but not high enough to risk the same levels of personal debt problems and trouble in the wider economy that we`ve seen recently."
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Tags: Bank of England, Financial Services Authority, committee, loans, debt problems
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