Speaking at the British Bankers Association’s annual conference, Bailey, managing director of the FSA’s prudential unit, said that fewer jobs and fewer homes have been repossessed in the latest recession relative to previous ones due to lender forbearance.
“Let me say something unusual now: I think that the banks deserve a thank you for the way in which they have sought to use forbearance. When I was chief cashier of the Bank of England, I was responsible for our work on the so-called London Approach whereby we seek to use our powers of persuasion to facilitate company re-financings which are in difficulty.
“That brought me into regular contact with the corporate loan restructuring bankers and I was always impressed by their commitment to helping companies in trouble. Sometimes the medicine could be hard, but there are many companies around today that would otherwise not be employing people.”
