Bank of England warns on risks from private credit

Time lags in re-valuing assets to reflect higher interest rates and difficulties in selling the assets quickly have increased the risks from private credit used by companies for funding, a Bank of England official said on Monday.

“If material enough, these risks materialising could trigger a broader reduction in risk appetite that spills over to UK financial stability through financial markets, impacting on financing conditions for UK businesses,” Lee Foulger, BoE director of financial stability, told a conference.

source: zawya