British banks are increasingly pledging higher-risk assets such as loans linked to high-interest store cards and vehicle leases as collateral at the Bank of England, a Reuters review of BoE filings shows.
On August 18, banks pledged £1.9 billion ($2.6 billion) worth of the BoE's highest-risk type of collateral at its weekly auction for six-month funds, its data shows, the most since March 2020 and three times as much as in the previous week.
