- Tuesday, 16 June 2009The failure of banks to monitor rising bankruptcy and IVA statistics was among the causing factors of the current economic turbulence, it has been claimed.
Chris Haskins, former chair of the Better Regulation Task Force, makes the assertion in an article for the Yorkshire Post.
He argues that the financial services industry and politicians in the UK and US can be held jointly responsible for the recessions taking place around the globe.
"Central bankers and governments, obsessed with controlling inflation, failed to monitor the greater danger of public and private insolvency," Mr Haskins explains.
He adds that "light-touch regulation" allowed banks to encourage their customers to run up excessive debts during a time of prosperity.
Now, official figures show IVA statistics on the increase, as well as a rising number of people declaring bankruptcy.
But unofficial estimates from R3, the Association of Business Recovery Professionals, claim that 700,000 people with debt management difficulties could be missed on official reports as Debt Management Plans are not included.
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