Chart of the week: Britain’s zombie companies

Insolvencies normally peak after recessions, as Brian Groom points out in the FT, but in Britain they have been falling since 2009.

Ultra-low interest rates and lenient banks, loath to crystallise yet more losses, are behind the trend.

The worry is that these firms, muddling through rather than restructuring or expanding, prevent capital from reaching more promising businesses, and thus hamper overall productivity and growth.


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