UK financial services firms fear rising defaults: CBI/PwC survey

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THE BHARAT EXPRESS NEWS INSURANCE NEWS
THE BHARAT EXPRESS NEWS INSURANCE NEWS

An increasing number of UK financial services firms expect a rise in loan defaults over the next three months, the latest reminder of the gloomy economic outlook.

A balance of 23% of respondents to the CBI/PwC Financial Services Survey said they expect the value of non-performing loans to increase in the next quarter. According to the poll, that value was 5% in September.

The balance is calculated by subtracting the percentage of respondents who said they expected an increase and subtracting the percentage who said they did not expect it.

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The survey also found that financial institutions identified regulatory changes as the top driver of disruption in their business by 2023. Inflation came second and digitization third.

The UK announced a series of reforms in December to “give a boost to growth” for the country’s banks, insurers and asset managers. But some in the City of London fear 2023 will be dominated by a jumble of judgment rather than action.

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“All eyes are now on the upcoming spring budget to see if the chancellor can build on the stability provided by the fall statement and deliver a concrete growth plan,” said CBI chief economist Rain Newton-Smith.

The latest survey included 95 companies and was conducted between November 22 and December 9.

Photo: The sun rises over skyscrapers in the Canary Wharf business, financial and shopping district of London, UK, on ​​Monday, October 3, 2022. Photo credit: Carlos Jasso/Bloomberg

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Copyright 2023 Bloomberg.

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