BoE’s Breeden warns of potential private credit crunch
Deputy governor cautions investors not to regard wobbles as ‘idiosyncratic’
Private credit could suffer a crunch similar to the one experienced by banks in the aftermath of the 2008 financial crisis, though widespread contagion would be unlikely, the Bank of England’s deputy governor for financial stability has said.
“We shouldn’t be in a situation where this brings down the banking system, but it might cause a private credit crunch in the way we had a banking credit crunch,” Sarah Breeden told a conference held by the Financial Times in London today (April 22). She
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