BoE’s Brazier warns lenders of ‘spiral of complacency’
UK lenders may be starting to let standards slip as memories of the crisis fade, Alex Brazier says
UK lenders could be at risk of entering a “spiral of complacency”, with some signs emerging of weakening standards in parts of the credit market, the Bank of England’s (BoE) Alex Brazier said on July 24.
Periods of good economic performance and low loan losses can end up being extrapolated, the BoE executive director told an audience at the University of Liverpool. He read a section from Northern Rock’s 2006 annual report, a year before there was a run on the bank: “The credit quality of our
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