The Bank of England has ordered banks to put aside an additional £11.4bn to deal with a potential economic slowdown.
Banks must set aside £5.7bn in the next six months and another £5.7bn by the end of 2018 as the Financial Policy Committee hinted that lenders are getting complacent about the low interest environment.
The FPC wrote: “Lenders may be placing undue weight on the recent performance of loans in benign conditions.
“There are pockets of risk that warrant vigilance. Consumer credit has increased rapidly.”
Despite the negativity the Bank added that “most financial stability indicators are neither particularly elevated nor subdued”.