Haldane says macro-prudential tools needed to prevent earnings 'arms race'

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Macro-prudential intervention could help to constrain the ‘arms race'-type behaviour often displayed by financial institutions, and should have a positive impact on the financial system as a whole, according to Andrew Haldane, executive director for financial stability at the Bank of England.

Speaking at a meeting of the Institute for New Economic Thinking in Berlin, Haldane, described the quest in the banking sector for ever-greater returns on equity and ever-increasing executive remuneration a