Research Director Sam Bowman was quoted in a City AM article, calling the Bank of England governor's comments "totally wrong."
Read the article here.
From Peter Spence's article:
"Bowman says that this lack of diversification makes banks "more vulnerable" as prices shocks and restrictions on bank size exarcebate the magnitude of systemic shocks. In 2008 Basel accord requirements worsened the impact of defaults, as banks had been required to hold mortgage debts."