Bank of England policies contributed to fall in overseas lending - BoE's Forbes

LONDON (Reuters) - Bank of England policies aimed at making banks safer and encouraging them to lend more at home played a noticeable role in reducing global cross-border lending, a central bank policymaker said in a research paper on Friday.

Kristin Forbes, a U.S. academic who joined the BoE's Monetary Policy Committee in 2014, said the central bank's domestically focused Funding for Lending Scheme and tighter capital requirements curbed overseas lending.

Between mid-2012 and the end of 2013, around 30 percent of the fall in Britain's cross-border lending could be linked to these policies, amounting to 10 percent of the global decline in international lending over the period, the report said.

Forbes wrote the discussion paper with two BoE staff economists, Dennis Reinhardt and Tomasz Wieladek.

(External MPC Unit Discussion Paper No. 44: The spillovers, interactions, and (un)intended consequences of monetary and regulatory policies http://www.bankofengland.co.uk/monetarypolicy/Pages/externalmpcpapers/extmpcpaper0044.aspx)

(Reporting by David Milliken)