A surge in consumer lending means British banks are at risk of incurring losses, the Bank of England said on Tuesday, warning that some might be letting credit standards slide as they compete to offer debt to households.
China's central bank raised short-term interest rates on Thursday in what economists said was a bid to stave off capital outflows and keep the yuan currency stable after the Federal Reserve raised U.S. rates overnight.
Bain Capital is planning its first Asia-focused credit fund, seeking to raise $1 billion to capitalize on distressed debt and direct lending opportunities as banks dispose of those assets and operations, people familiar with the plans told Reuters.
U.S. Treasury debt yields rose on Friday after data showed the world's largest economy grew at a faster rate than expected in the third quarter, suggesting the U.S. Federal Reserve was on track to raise interest rates at its December meeting.
China's economy expanded at a steady 6.7% in the third quarter and looks set to hit Beijing's full-year target, fueled by stronger government spending, record bank lending and a red-hot property market that are adding to its growing pile of debt.
The key to successful deleveraging of corporate debt is a clear line between the government and the marketplace, a commentary in the People's Daily, the official newspaper of the ruling Chinese Communist Party, said Wednesday.
Rising debt levels will worsen the credit profiles of China's top 200 companies this year, requiring the country's banks to raise as much as $1.7 trillion in capital to cover a likely surge in bad loans, S&P Global said in reports on Tuesday.
“Given that the economy is still relatively closed, it should be within the power of policymakers to maintain a monopolistic environment for the banks to earn their way out.”
