Graham Rusling, Managing Director for Barclays Business Support and Recoveries said:
- 9.3% increase in corporate insolvencies (excluding liquidations) in Q3 09 compared with previous year
- 3.3% decrease in administrations, which are normally utilised by larger organisations, in Q3 09 compared with previous year
- 5% decrease in administrations in Q3 09 compared with previous quarter
“A quiet September on the administration front has given way to increasing activity in October and further warning signs that 2010 will not be a quiet one for restructuring teams in UK banks, something we are prepared for.
“At Barclays we have maintained robust risk controls around lending to sectors such as commercial property compared with some of our peers, which has assisted in keeping the number of corporate failures we have witnessed lower in relative terms than during the previous recession in the early 90s, as has a much greater focus on restructuring over insolvency.
“However, unfortunately no sector is immune. The type of corporate insolvency we are set to see coming through now and into 2010 are businesses that have taken advantage of virtually all recessionary assistance on offer from Government, lenders and investors, and still have not seen their fortunes improve sufficiently to see a viable future.”
Barclays is a major global financial services provider engaged in retail banking, credit cards, corporate and investment banking and wealth management with an extensive international presence in Europe, the Americas, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs nearly 147,000 people. Barclays moves, lends, invests and protects money for 48 million customers and clients worldwide.
For further information about Barclays, please visit our website
www.barclays.com.