Report
Could Covid-19 lead to higher bank losses on unsecured debt?
Publication details
Summary
The purpose of Bank Overground is to share our internal analysis. Each bite-sized post summarises a piece of analysis that supported a policy or operational decision. Lower income households, who tend to hold unsecured debt, but not mortgages, have faced financial pressure due to Covid-19. This could lead to higher bank losses on unsecured debt and have consequences for financial stability.