Tuesday, 20 December 2016

Warns on UK household debt



 
 
Date: 30 November 2016
Media: BBC News
What happened?
The governor of the Bank of England, Mark Carney, has given a warning about the high level of debt in UK households.
In particular he said that consumers were borrowing more on their credit cards and other unsecured debt.
Whom and where it affects?
It affects mainly England but its consequences can be derived in the rest of Europe.
What sort of public or private institutions are involved?
The Bank of England.
Why is it important for Banking and Finance?
Because the Bank's Stability Report showed that the overall ratio of household debt to income was 133% in the second quarter of 2016. However the Bank said that was high by historical standards, although it was not as high as in the financial crisis.
What do you think will be the consequences in the foreseeable future?
In principle none, since the figures are inferior to those of the world crisis, but taking into account the weight of England in the world economy would have to be cautious.
Key words:
Household debt, borrowing, credit card lending, Stability Report.


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