Bank of England Governor Andrew Bailey has sounded the alarm over towering levels of corporate borrowing and warned that highly indebted companies may struggle to survive the year.
As the central bank published its latest financial stability report, he said businesses loaded with debt are 'much less resilient'.
The warning came amid a wave of takeovers of British companies by private equity firms well known for piling extra debt – or leverage – on to firms to reduce tax bills and increase profits.
Bank of England governor Andrew Bailey (pictured) cautioned that businesses loaded with debt are 'much less resilient' and would be at risk of going under if another crisis hit