UK Banks Warn Half of Bounce Back Loans will Default

UK banks are warning that up to half of the £18.5bn of bounce back loans could fail and hundreds of thousands of SMBs could fail; banks are also worried that there is a burgeoning PR crisis coming if they were to try and pursue payments; “Some arrangements will have to be made. A lot of them will be written off or converted into something else,” said one bank chairman to the FT. “In most cases the idea of the government taking equity in these companies is unrealistic — they are simply too small. So the question is what’s going to happen to all of these loans?”; there has been discussion of creating a bad bank structure to help absorb the bad loans and remove them from banks’ balance sheets so they can continue to lend through the crisis; allowing so many companies to fail is not something the government will let happen. Financial Times

  • Emily Donato

    With efforts in many different areas of the team, she helps manage, organize and execute digital and event content. She works with webinars, podcasts, social media along with managing the hundreds of speakers that attend our conferences. Emily was a part of the Zimmerman Advertising Program at the University of South Florida. She graduated in 2019 receiving a Bachelor of Science in Business Advertising.