Smaller non-bank lenders ‘won’t survive’ BoE rejection

BoEHorse_Adobe_575x375
By Tom Brown
15 Jul 2020

Some non-bank lenders are unlikely to survive the pandemic crisis, sources say, after the Bank of England told the industry it is not willing to provide emergency liquidity support in the wake of the Covid-19 outbreak. Non-bank institutions are having to grant the same payment relief to customers as high street banks but still have outgoing warehousing costs.

“Specialist lenders are providing the same support to their customers that the mainstream banks are providing, but obviously there is a clear focus on supporting the mainstream banks,” said one source at a large non-bank financial institution. “I expect there will a number smaller lenders which won’t survive.”

...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial