Bank of England warns of ‘pockets of risk’ to growing £200 billion consumer debt pile

‘The Bank of England has warned that British high street banks risk losing as much as £30bn from defaults on credit cards and personal loans credit were the economy to take a turn for the worst.
The Old Lady of Threadneedle Street cautioned that the UK’s growing £200bn consumer debt pile threatens some to damage the capital positions of some of Britain’s biggest banks should a sharp downturn in the economy take place.
In a sombre statement from the central bank’s Financial Policy Committee, the burgeoning consumer credit market was described as a “pocket of risk.”
Although the Bank, led by Governor Mark Carney, asserted that rising consumer debt defaults would be unlikely to materially damage economic growth, it did warn that they would not be without cost.’
Read more: Bank of England warns of ‘pockets of risk’ to growing £200 billion consumer debt pile