BANKS have been asked to set aside an extra £10 billion to cover losses from people who can’t pay debts on car loans and credit cards.
This morning the Bank of England warned that rising interest rates and high unemployment levels could mean that one in five consumer credit loans might have to be written off.
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The Bank’s Financial Policy Committee also said that consumer credit loses could hit £30 billion if Britain went into recession – £10 billion more than previous estimates.
It fears that a lending boom in credit cards and loans could really hit the financial industry.
The Bank of England has been concerned for some time now about double-digit growth in consumer cred…
Read the full article at: https://www.thesun.co.uk/money/4539194/banks-asked-to-set-aside-10billion-to-cover-loses-from-people-who-might-not-be-able-to-pay-debts/