Big UK banks have £278 billion exposure to ‘junk’ loans

The top five UK banks had more than a quarter of a trillion of exposures to non-investment grade, or 'junk', loans, an asset class the Bank of England has pledged to scrutinise in coming months. 

Barclays, HSBC, Lloyds, RBS and Standard Chartered had approximately £905 billion of corporate loan exposures, as measured using their respective internal ratings-based (IRB) models, as of end-June.

Of this amount, around 31% were assigned probabilities-of-default (PD) equal to a Standard & Poor’s

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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net 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 here: