Tighter FSA rules could restrict finance

Housing associations could face higher loan repayments and reduced access to funds as a result of tougher banking rules, housing experts fear. The Financial Services Authority wants lenders to hold higher levels of capital and liquid assets in reserve, and this may push up interest payments across social housing as loan agreements allow lenders to pass the costs of additional regulation to their customers, and with ‘virtually all’ of the sector’s loans having the clause, costs for associations are likely to be impacted.