Bank of England warns it will go after firms looking to mask risks

Some lenders are taking more risks and are seeking to ‘circumvent the spirit’ of the regulations, says deputy governor

The Bank of England has issued a warning to major lenders not to repeat their antics of the years before the 2007 credit crisis when they deployed complex strategies to mask the financial risks they were running.

Sam Woods, one of the Bank’s deputy governors, also said some lenders were starting to take more risks and set out a number of products facing scrutiny from regulators, including an increase in mortgage terms from 25 to 35 years.

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