BOE Warns That Loan Charges Could Hurt Business Funding: FT

Bookmark

(Bloomberg) -- The Bank of England has warned U.K. lenders that booking large charges on bad loans could curb their ability to support struggling companies, the Financial Times reports, citing several people involved in the discussions.

The BOE’s Prudential Regulation Authority has advised bank executives not to “kitchen sink” provisions in the first quarter, the people told the FT.

Regulators fear that conservative planning for defaults could hit banks’ capital levels, reducing banks’ ability to make new loans as companies need credit, the FT reported.

©2020 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.