The game's governing body has ruled that the system is in breach of transfer window regulations.
"It would be a shame to lose it in my opinion. I think it works well how it is," Howe told the Lancashire Telegraph.
"It enables us to bring players in and vice versa, it enables us to get players out.
"It's all about producing young players and trying to get them into the game, and I think that's English football's biggest problem at the moment, and I don't think this (proposed ruling) particularly helps."