
Risky loans reach pre-crisis levels as banks are increasingly bypassed, warns BIS
Loans to "low-rated, highly leveraged borrowers" accounted for about 40% of new signings in syndicated loan markets from July to November – a higher share than in the years leading up to the financial crisis, according to the Bank for International Settlements' (BIS) latest quarterly review, published yesterday.
The "remarkably" high share of so-called 'leveraged' loans was the result of "both higher volumes of riskier loans and lower volumes in the safer part of the spectrum", the BIS said. The
More on Financial Stability
Latest issue
Most read
- A route to economic growth – The Belt and Road Initiative 2018 survey
- Policymakers should act now to prevent next crisis – IMF panellists
- The Bank of Italy’s approach to risk-based budgeting
- Dudley backs floor-based system for setting monetary policy
- Asian Infrastructure Investment Bank – Raising expectations