Banks across Europe are finding it increasingly difficult to offload unsold loans from 2007 in the wake of the credit crisis. In total, there is a £60 billion backlog of loans that are yet to be sold, though banks are likely to announce job cuts in the syndicate banking sector in the coming months as it becomes harder to sell the loans to investors .
Given the problems caused by the sub-prime crisis in the US, investors are understandably cautious of taking on bank’s riskier leveraged loans, and are demanding greater discounts in order to purchase the loans.
Last year saw leveraged lending of £183 billion in Europe, the Middle East and Africa, though £124 billion of that was lent in the first half of the year – a record high. The fact that just £59 billion was lent in the second half owes to the effects of the sub-prime crisis.
Banks Across Europe Struggle to Clear Loans Backlog
Banks Across Europe Struggle to Clear Loans Backlog
Fri, 18 Jan 2008
Recommended links
The Essential Personal Loans GuideNeed a Credit Report?
Debt Solutions
Unsecured Loan Lenders
Cheap Loan Offers
Loans Interest Totals GBP93 Billion a Year in the UK
MPs Call for Capped Loan Rates for Poor Families
| Personal loans news |
|---|
| February Loan Approvals Drop - Fri, 09 May 2008 |
| Credit unions offering personal loans - Wed, 07 May 2008 |
| Lender Increase Loan Rates Again - Thu, 01 May 2008 |
| More News |
Paying Too Much?
7 out of 10 people are paying too much for their mortgage. To find out if you're one of them click here or fill out a FREE no obligation enquiry form