"We have a direct line of sight into how these guys are doing. The dog that is not barking - and I wouldn't have expected it to - is that this is a material event for these institutions," Carney told the newspaper in an interview.

He also said he believed the amount of slack in Britain's economy had narrowed since the BoE estimated in November that it was equivalent to 0.5 percent of gross domestic product.

(Reporting by William Schomberg, editing by David Milliken)