UK Policy Makers Question the Resilience of Marketplace Lending Platforms after Brexit Vote

Stress testing from Funding Circle has reported its loan platform would still provide investors with a net return of 6.4% given a worst case market scenario; while effects from Brexit continue to be debated, market skeptics are not as optimistic as the UK platforms; they foresee stagflation in the UK characterized by higher unemployment and slowing GDP growth; they are also concerned about a lack of skin in the game which has prompted parliament member, Chris Philp, to request from the Financial Conduct Authority that a portion of each firm’s loans include balance sheet capital; while marketplace lending executives are against this approach, policy makers are considering it.  Source

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