Lenders can ‘take the strain’ of coronavirus, reassures Mark Carney

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Lenders can ‘take the strain’: Outgoing Bank Governor Mark Carney says coronavirus will not cause a financial crash as bad as the Great Recession

By Daily Mail City & Finance Reporter

Published: | Updated:

Mark Carney has reassured the country that coronavirus will not cause a financial crash as bad as the Great Recession

The Bank of England’s outgoing Governor Mark Carney has reassured the country that coronavirus will not cause a financial crash as bad as the Great Recession.

Carney, 54, claimed that the banking system is much more resilient than in 2008, and should be able to support businesses and customers through a slowdown.

The Canadian said it was too early to tell whether there would be a recession this year. 

Although he stressed the impact of the coronavirus outbreak on the economy should be short, sharp and temporary, he added, the shock ‘could be large’.

‘In 2008, the financial system was the core of the problem. This time, it can be part of the solution.’ He claimed that in 2008, the Bank of England cut interest rates ‘to get to the weekend’.

He added: ‘We’re in a different place. This is not about making it to a weekend. It’s not about backstopping the system.’

 

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