George Mudie, MP for Leeds, asked Turner why there was not a regulatory document as comprehensive as the Mortgage Market Review for commercial lending.
Turner replied: “We’re crawling all over it but I think the nature of commercial real estate does not give itself to a set of rules. What I can assure you is that on the prudential side, the issue on commercial real estate lending will be for the FPC and PRA.”
Mudie said that while the FSA had made regulation that affected youngsters and families, and that Turner should be proud of himself for that, where was the same document for bad lending on property?
But Turner said: “It’s [commercial lending] more difficult to regulate through rules. I think it’s more appropriate to do it with appropriate capital requirements. It’s more of an issue for the FPC.”
