UK banks quicker to recover defaulted loans than German and French

UK banks have a far better recovery rate for defaulted loans to small and medium-sized enterprises than those in Germany or France, according to research published today. The study looked at 10 leading banks, four in the UK and three each in Germany and France, which between them represent more than a third of SME lending.
Recovery rates can be a source of competitive advantage for banks as they have considerable flexibility over how they deal with defaults, even though the new Basel II banking rules redefine default and set new standards for capital adequacy purposes. More