The Bank of England has warned high street banks are taking increasing risks selling mortgages and commercial loans that could threaten the stability of the financial system if left unchecked. High street banks are increasingly selling mortgages at or near the Bank’s restriction for borrowing not to exceed more than 4.5 times a customer’s income. Although the cost of borrowing remains lower than before the financial crisis, the Bank has begun to raise interest rates, putting increasing pressure on household finances. However, the Bank said the high street banks could still withstand a disorderly Brexit. Elsewhere, the committee said it would take action to ensure the financial system was protected against any risks arising from bitcoin and other cryptocurrencies.

Source: The Guardian March 16, 2018 15:45 UTC