UK Banks Brace for Bad Debt Pain to Continue

Published on:
12 September 2006 at 10:21 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00010784-uk-banks-brace-for-bad-debt-pain-to-conti/

After being hit with $1.3 billion in bad debts in the first half of this year, banks in the UK are bracing for higher totals in the second half.

More UK bankruptcies, high fuel and utility costs, and the time lag before tighter lending has an impact are likely to delay any improvement in bad debts, Reuters reported in a feature story today.

Credit card companies reported earnings last week and a big part of the reports were commentaries on rising bad debt. Although credit policies were tightened nearly two years ago, the banks said that purging their balance sheets of the non-paying loans was like “a pig moving through a python.?

For the entire story, please visit UK Banks Brace for Bad Debt Pain to Continue.