Central Banks
BOE Says Companies More Vulnerable to Souring Market Sentiment
- Shift away from banks toward market finance is risk to UK
- More than half of UK corporate debt is now market based
City workers pass the Bank of England in London, UK.
Photographer: Carlos Jasso/BloombergThis article is for subscribers only.
The Bank of England warned that UK companies risk being locked out of funding if investor sentiment suddenly sours.
Sarah Breeden, the UK central bank’s executive director for financial stability, said many companies have shifted away from bank lending and toward market-based finance since the financial crisis, and that leaves them vulnerable to shocks and sudden changes in global risk appetite.