Britain’s banks need to set aside another œ10 billion ($13.5 billion, 11.3 billion euros) to cushion against potential consumer credit losses, the Bank of England warned Monday.
The central bank’s Financial Policy Committee watchdog said the sector was “underestimating” the risks of mounting household debt, but added that climbing debt levels did not pose an immediate risk to the economy.
“Within a benign overall domestic credit environment, there is a pocket of risk in the rapid growth of consumer credit,” the FPC said in statement after meeting on September 20.
