A fresh slide for Provident Financial in the wake of last month’s profit warning bucked the trend as the London market recovered from an underwhelming start to the week, the Financial Times reported. Provident was the biggest decliner on the FTSE 100 as a 23 per cent drop in adjusted first-half profits rekindled fears that triggered a 17 per cent fall in shares at the end of June — when the doorstep lender revealed the extent of a botched restructuring of its loan-collection procedures.

UK banks offering easy credit risk endangering “everyone else in the economy”, according to a high-ranking official at the Bank of England. Alex Brazier, who is a member of the bank’s Financial Policy Committee, warned in a speech on Monday that “pockets of debt” pose a growing risk, as household incomes are squeezed by rising prices and weak wage growth, the Financial Times reported. Mr Brazier said there were three aspects of household lending that were of particular concern. Terms and conditions on some credit cards and personal loans have been relaxed.

The International Monetary Fund has cut its growth forecast for the UK economy in 2017, its first downgrade since the immediate aftermath of the Brexit vote last year, the Financial Times reported. In an update to its World Economic Outlook, the IMF said annual GDP would expand 1.7 per cent this year, compared to a forecast of 2 per cent growth made in April. The 2018 forecast was unchanged at 1.5 per cent.

Carillion has hired professional services firm EY to assist with a review of its finances, as the UK construction and support services group turns to more outside advisers in a bid to repair its balance sheet, the Financial Times reported. The FTSE 250 group said it had brought in EY “with immediate effect” to work on the strategic review it announced last week, with a focus on cutting costs and collecting more cash from contracts.

In 2014, U.K. builder Carillion Plc was riding high: it had just won a $434 million contract to build the Royal Liverpool Hospital and was attempting to snap up its struggling rival Balfour Beatty Plc for about $2.6 billion, Bloomberg News reported. Three years later, and the former Tarmac business is on life support. Carillion has lost 70 percent of its market value this week after flagging 845 million pounds ($1.09 billion) in surprise contract provisions.

The official who looks after bankrupts’ affairs is seeking to have the bankruptcy period of a Co Westmeath businessman extended over an alleged lack of cooperation and concerns about assets transfers, the Irish Times reported. The business affairs of Patrick J Daly include an investment in a property in Panama in 2006 that was lost through fraud, and which featured in a murder trial in the Central American country in which the fraudsters were convicted of murdering a local politician after he discovered what they were up to.

The availability of consumer credit in the UK economy tightened in the second quarter and is expected to decline further as banks turn cautious amid a worsening in Britain’s economic outlook, according to the Bank of England. Retail banks and other lenders told the BoE they had cut back on the supply of unsecured lending – which includes credit card loans – in the three months to the end of June, the Financial Times reported.

Carillion's lenders are preparing for potentially painful restructuring talks if the British construction company is unable to stabilise its business and plunging share price, sources familiar with the company and its investors said. Carillion, which has worked on projects ranging from London's Tate Modern gallery to the Twickenham Rugby stadium, announced huge provisions on problem contacts on Monday, leading its chief executive to step down and its shares to plummet by more than two thirds in three days, the International New York Times reported on a Reuters story.

Carillion Plc interim head Keith Cochrane said “no option is off the table” as the British construction company seeks to recover from a record stock market plunge, weaker-than-expected profit growth and the resignation of its chief executive officer, Bloomberg News reported. Cash flow from some projects has deteriorated, and the board will review all of the company’s major contracts with the help of KPMG, Carillion said in a statement Monday.

Global regulators have claimed victory in the drive to tame the toxic parts of the “shadow banking” market that made a devastating contribution to the global financial crisis a decade ago, the Financial Times reported.