UK credit stress is rising, BoE official warns

David Bailey says financial firms “need to take action now” to prepare for higher defaults

David Bailey
David Bailey
Photo: Bank of England

Credit stress is likely to add further pressure to financial firms already affected by higher interest rates, the Bank of England’s David Bailey said today (May 4).

Bailey, executive director for UK deposit-takers supervision, said inflation and rising interest rates had driven down consumer confidence, cut spending and increased stress on household finances. That is likely to lead to rising defaults in the months ahead, he warned.

The credit data the BoE collects from regulated firms has

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.