HSBC warns on rising insolvency figures

HSBC warns on rising insolvency figures

Rising insolvency figures have major influence on loan impairment charges

HSBC
has warned that the increasing number of bankruptcies and individual
voluntary arrangements were a ‘major influence’ on loan impairment charges in
personal loans and credit cards.

The rising insolvency figures have led to slower growth
in unsecured lending and lower revenues from credit-related insurance.

The bank does not see an immediate end to the problems: ‘The trend of rising
personal bankruptcies and IVAs seen since the second half of 2005 looks unlikely
to abate in the medium term.’

Last week,
Barclays
warned that the rate of growth of impairment charges had grown to due to the
rising level of insolvencies.

Further reading:

IVA factories to
thrash out regulation by February

IPA to set up regulator for debt management
firms

Pressure grows on IVA factories

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