Bounce-back loan losses

[AtW]

Meh, hardly worth mentioning. Most banks have a dire attitude towards SMEs at the best of time.

Yet, banks are said to have lobbied hard against it

Probably won’t be a problem now that we are faking collapse of banks in the first place

[ladymuck]

Not risk free - they agreed to pursue these debts in the same way they’d pursue their own loans, so extra costs + rep damage of taking lots of firms to court

Meh, hardly worth mentioning. Most banks have a dire attitude towards SMEs at the best of time.

[AtW]

The banks won't lose anything. It was risk free to them.

Not risk free - they agreed to pursue these debts in the same way they’d pursue their own loans, so extra costs + rep damage of taking lots of firms to court

[Protagoras]

... looks like the banks lose their cash?

The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.

https://www.gov.uk/guidance/apply-fo...unce-back-loan

[ladymuck]

So no evidence of know your customer, looks like the banks lose their cash?

I think they were under orders to do minimal checks because HMG was backing it and wanted to be seen to be helping.

The banks won't lose anything. It was risk free to them.

[vetran]

So no evidence of know your customer, looks like the banks lose their cash?

[AtW]

90% of these loans will be lost

[SueEllen]

A flawed system that in some cases was exploited by a criminal element. Find 'em, bankrupt them, chuck 'em in gaol for fraud.

No space in jail.

Better to go after their assets including those of near relations/partners if they cannot prove they were gained through legit means.

[Zigenare]

So, it seems that loans were written totalling £47Bn, with an estimated fraud / error rate of c.8%.
(Source: https://www.bbc.co.uk/news/uk-64879444)

Presumably defaults would be on top of this.

So that's roughly £3.7Bn of tax payer losses. Who ever would have guessed

Just as well there's all that additional tax revenue from off-payroll, eh ?

A flawed system that in some cases was exploited by a criminal element. Find 'em, bankrupt them, chuck 'em in gaol for fraud.

[SueEllen]

The government is being predicted to change the pension allowances to get people back to work. Problem is final salary pensions have their own rules and the cohort who have retired will be most of the people on them.

[ladymuck]

There's a shocker.

One could always argue that the defaults are the fault of IR35 - without the recent changes, more small businesses would have remained viable and therefore able to repay their loans.

[Protagoras]

So, it seems that loans were written totalling £47Bn, with an estimated fraud / error rate of c.8%.
(Source: https://www.bbc.co.uk/news/uk-64879444)

Presumably defaults would be on top of this.

So that's roughly £3.7Bn of tax payer losses. Who ever would have guessed

Just as well there's all that additional tax revenue from off-payroll, eh ?