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SME forbearance and its implications for monetary and financial stability

Author

Listed:
  • Martin Arrowsmith

    (Bank of England)

  • Martin Griffiths

    (Bank of England)

  • Jeremy Franklin

    (Bank of England)

  • Evan Wohlmann

    (Bank of England)

  • Garry Young

    (Bank of England)

  • David Gregory

    (Bank of England)

Abstract

This article presents the results of an investigation into the extent of loan forbearance in the SME sector and its implications for productivity and financial system resilience. Around 6% of SME borrowers were estimated to be in receipt of some form of loan forbearance in March 2013. This accounted for around 14% of the major five UK banks’ exposure to this sector. SME forbearance appears to account for only a small proportion of the weakness in aggregate UK productivity and also seems unlikely to threaten financial system resilience.

Suggested Citation

  • Martin Arrowsmith & Martin Griffiths & Jeremy Franklin & Evan Wohlmann & Garry Young & David Gregory, 2013. "SME forbearance and its implications for monetary and financial stability," Bank of England Quarterly Bulletin, Bank of England, vol. 53(4), pages 296-303.
    • Handle: RePEc:boe:qbullt:0117
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    References listed on IDEAS

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