UK banks ordered to hold more capital as consumer debt surges
by Jill Treanor from on (#2V1RR)
Bank of England brings forward annual stress tests as it grows anxious over lenders' exposure to consumer credit
The Bank of England is to force banks to strengthen their financial position in the face of a rapid growth in borrowing on credit cards, car finance and personal loans.
The intervention by Threadneedle Street means banks will need to set aside as much as 11.4bn of extra capital in the next 18 months and is intended to protect the financial system from the 10% rise in consumer lending over the year.
Related: Central banks raise alarm over new crash after steep rise in lending
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