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<p>According to the Bank of England’s Money and Credit data, the outstanding level
of consumer credit, in nominal terms, was £183.9bn in March 2010, compared to £209.4bn
in March 2018.</p><p> </p><p>The government established the independent Financial
Policy Committee (FPC), giving the FPC a primary objective to identify, monitor and
take action to remove or reduce systemic risks with a view to protecting and enhancing
financial stability. Following the Bank of England’s 2017 stress test, the FPC said
that regulatory capital buffers for individual firms should now be set so that each
bank can absorb losses on consumer lending, alongside all the other effects of the
stress test on its balance sheet. This will ensure lenders are resilient to any defaults
related to consumer credit.</p>
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