Thursday, Jun 26, 2008

A credit downturn should be familiar territory for banks. Think again

Economist: Tread carefully

THE credit crunch has been an alien landscape for many banks. Exotic products, new accounting rules and an unprecedented liquidity freeze have left them groping for handholds.
Banks are also dealing with new types of borrowing. In Britain untested areas of specialist lending, such as buy-to-let and self-certification mortgages, are coming under stress for the first time. HBOS, the country’s biggest lender, revealed in June that arrears in these asset classes had risen much faster during the first five months of the year than among prime borrowers.

Posted by stevie dee @ 11:14 PM (153 views) Add Comment

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