Only banks can fully solve lending problem: King

No amount of central bank liquidity can bring interbank rates back down to normal levels, Mervyn King, the governor of the Bank of England, said on Tuesday.

Speaking to British lawmakers, King said: "It is certainly true that the reason for the rise in spreads [between interbank rates and central banks' benchmark rates] in recent weeks is not due to a shortage in cash,"

"Large banks are now awash with cash. The issue is if they're willing to lend. Banks are concerned with the capital position of

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