Could Covid-19 lead to higher bank losses on unsecured debt?

Publication type

Report

Series

Bank Overground

Author

  1. -

Publication date

September 28, 2020

Summary:

The purpose of Bank Overground is to share our internal analysis. Each bite-sized post summarises a piece of analysis that supported a policy or operational decision. Lower income households, who tend to hold unsecured debt, but not mortgages, have faced financial pressure due to Covid-19. This could lead to higher bank losses on unsecured debt and have consequences for financial stability.

Subjects

Link

https://www.bankofengland.co.uk/bank-overground/2020/could-covid-19-lead-to-higher-bank-losses-on-unsecured-debt

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