LONDON, Jan 17 (Reuters) - Most banks have adequate controls for risks from consumer credit and some have begun tightening criteria for loans, the Bank of England said on Wednesday.
The BoE’s Prudential Regulation Authority (PRA) published a letter to chairs of the deposit-taking banks it supervises, setting out findings from a review last year of how banks were managing risks from strong growth in consumer credit at that time.
“Most firms provided evidence of effective risk management and controls for consumer credit, and understood the risks in their business,” James Proudman, executive director for UK deposit takers supervision at the PRA, said in his letter.
“We have also seen some early indications of firms tightening underwriting standards in 2017, such as raising scorecard cutoffs or reducing zero percent credit card periods, though risks remain elevated and continued vigilance is required by lenders and the PRA alike,” Proudman said.
Reporting by Huw Jones and David Milliken; Editing by Adrian Croft