Andrew Hauser, head of the sterling markets division at the the Bank of England, has called on the industry to do more to encourage long-term holders of high-quality securities to release them in order to ease a potential $4 trillion collateral shortfall.

Speaking exclusively to Financial News, Hauser, who implements quantitative easing and other monetary policy decisions on behalf of the Bank's rate-setting committee, acknowledged that the securities lending industry needs to find ways of ensuring that high-quality assets are made available to borrow, given the risk of a future collateral crunch.