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
