§ Mr. Denzil Davies
asked the Chancellor of the Exchequer what steps he proposes to take to reduce non-bank financing.
§ Mr. Lawson
, pursuant to his reply [Official Report, 28 June 1979], gave the following answer:
Although the Government's target for money supply growth is in terms of sterling M3, in framing their objectives and implementing their policies they take account of flows of funds other than through the banking system. Thus policy already takes account of the disintermediation and will respond as appropriate if it should increase.