Liverpool chief executive Rick Parry believes Premier League clubs are wealthy enough to make the practice of loan deals unnecessary.
Parry believes the Premier League loan system should change
Parry, who held a similar position at the Premier League before joining the Reds, says the system is open to abuse.
He said: "At the Premier League we thought that, given the money there is, you didn't need loans - you should be able to stand on your own two feet.
"There is enough money around to make transfer deals permanent."
He added: "That stood over 10 years. It's only in the last two or three years that we have had the loan system in the Premier League.
"It worked fine without it. There is a sense that it can be open to abuse but clearly it was the will of the clubs to allow the relaxation of it and clearly the majority are in favour."