Bankruptcy risk helped by lending
26/11/2010There will be less risk of debt problems and bankruptcy caused by bad lending for some time yet, according to the worlds biggest bank.
UK economist for French bank BNP Paribas, Alan Clarke, thinks despite claims that say otherwise, there is no danger of banks returning to reckless lending policies at the moment.
Mr Clarke noted that the end of the special liquidity scheme would be here by 2012, which would mean fewer loans which cause debt problems.
He says: "Lenders are going to have to make provisions to prepare for the end of that scheme, and this is also going to make them more reluctant to want to lend to households and businesses." 
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