UK banks could withstand leveraged loan crisis

Risky corporate loans held by big UK banks could inflict £9.7 billion ($12.7 billion) of losses in a severe downturn, the Bank of England stress tests show.

Leveraged loan exposures held by the seven bank participants in the tests – Barclays, HSBC, Lloyds, Nationwide, RBS, Santander UK and Standard Chartered – stood at £90 billion, the BoE found. Under the central bank’s severe stress scenario, losses on these were estimated to be 11% over two years, equivalent to a 40 basis point deduction to

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: