SUCH is the concern of the Bank of England's financial watchdog about the state of the economy that it considered lifting rules on banks' cash holdings altogether.
Minutes from the Financial Policy Committee's latest meeting published yesterday show that members discussed the removal of rules on liquidity due to concern that it is hindering lending.
The discussion is remarkable given that low liquidity levels were contributors to the part-nationalisation of Royal Bank of Scotland and Halifax Bank of Scotland, now part of Lloyds Banking Group, in 2008.
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