UK banks may write off £41billion in loans due to recession: Credit Suisse

Britain's lenders will have to write off £31 billion to £41 billion ($35.6 billion to $47.1 billion) of loans over the next three years as the country is hit by a recession, analysts at Credit Suisse Group AG predicted.

The estimates are based on an economic contraction of between 1.5% and 4%, Omar Keenan and Alexander Demetriou said in a note. The write-offs would be 40% to 90% above regular "through-the-cycle" levels, they added.

The forecast reflects the damage that the cost-of-living crisis is set to inflict on Britain's economy. Liz Truss, the new prime minister, is due to set out her plan to tackle soaring energy bills on Thursday. Bloomberg